EY 10Meaning of life insurer

1. Life insurer means a person carrying on a business of providing life insurance.

2. A person carrying on a business of providing life insurance in an income year is treated as not carrying on a business of providing life insurance while the person has full reinsurance.

3. Except for the reference to life insurer in section EY 8 where Lloyd’s of London is treated as a life insurer, Lloyd’s of London is treated as not being a life insurer in relation to its business of providing life insurance, the premium from which is income of Lloyd’s of London under section CR 3B (Lloyd’s of London: income from life insurance premiums).

4. An association of persons, a body of persons, or a trustee is treated as carrying on a business of providing life insurance to the extent to which—

5. the association, body, or trustee provides life insurance; and
6. the consideration for the provision is something other than natural love and affection.

7. Every life insurance policy entered into by the association, body, or trustee as insurer is treated as entered into with an unrelated party, even if the life insurer and the policyholder are, for example,—

8. an association and a member of the association; or
9. a trustee and a beneficiary of the trust.

10. Subpart HE (Mutual associations) does not apply to the business of providing life insurance of the association, body, or trustee.