Section EZ 55 — Income Tax Act 2007: Expected death strain formulas: option when more than 1 life insured

EZ 55 Expected death strain formulas: option when more than 1 life insured When this section applies (1) This section applies when a life insurance policy covers more than 1 life insured. Claim probability (2) In using the relevant expected death strain formula, the life insurer may use as claim probability a common factor for all the lives insured under the policy. Features of common factor (3) The common factor must be a reasonable approximation of the average probability of a claim arising under the policy for each life insured’s death in the income year. It must be weighted as necessary to take account of— (a) differing claims for individual lives insured under the policy; and (b) differing amounts in the life insurer’s actuarial reserves for individual lives insured under the policy. Defined in this Act: actuarial reserves , amount , claim , income year , life insurance policy , life insured , life insurer Section EZ 55: inserted, on 1 July 2010, by section 199(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).