Income Tax Regulations

1406 Any amount determined under section 1404 or 1405 shall be determined

• (a) net of relevant reinsurance recoverable amounts;

• (b) by excluding any obligation to pay a benefit under a segregated fund policy if

  • (i) the amount of the benefit varies with the fair market value of the segregated fund at the time the benefit becomes, or may become, payable, and

  • (ii) the benefit is not in respect of a guarantee given by the insurer under a segregated fund policy; and

• (c) without reference to any amount in respect of a deposit accounting insurance policy.