Section EY 7 — Income Tax Act 2007: Meaning of claim

EY 7 Meaning of claim Meaning in life insurance rules (1) In the life insurance rules, claim — (a) means the amount that a life insurer is liable to pay under a life insurance policy because the contingency against which the life insured is covered under the policy has occurred; subsections (2) to (5) expand on “ the amount that a life insurer is liable to pay ” : (b) excludes a payment made by a life insurer on the transfer of some or all of its life insurance business: (c) in the expression “ claim arising ” , does not have the meaning given to the word “ claim ” in paragraph (a) or (b). Cash and non-cash benefits (2) For the purposes of subsection (1)(a), the amount that a life insurer is liable to pay includes— (a) a payment on the death of a life insured: (b) a payment on maturity: (c) a payment of a cash bonus: (d) a payment on the surrender of a policy: (e) an annuity payment: (f) a benefit other than in cash. Advance or amount in actuarial reserves (3) For the purposes of subsection (1)(a), the amount that a life insurer is liable to pay does not include— (a) an advance against the security of the policy; or (b) a bonus or other discretionary amount added to the actuarial reserves. Amount before certain subtractions (4) For the purposes of subsection (1)(a), the amount that a life insurer is liable to pay means the amount before the subtraction of the following amounts payable to the life insurer: (a) an advance against the security of the policy; and (b) an unpaid premium for the policy; and (c) interest on an amount referred to in paragraph (a) or (b). Amount zero (5) For the purposes of subsection (1)(a), the amount that a life insurer is liable to pay may be zero. Defined in this Act: actuarial reserves , amount , business , claim , interest , life insurance , life insurance policy , life insurance rules , life insured , life insurer , pay , premium Compare: 2004 No 35 s EY 7 Section EY 7(1)(b): amended, on 1 July 2010, by section 187(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).