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Income Tax Act 2007

Timing and quantifying rules - Terminating provisions - Entry to new life insurance regime: transitional and miscellaneous provisions

EZ 62: Reinsurance transition: life financial reinsurance may be life reinsurance

You could also call this:

“Special treatment of some older life insurance contracts as life reinsurance”

If you have a life insurance contract that was made before your reinsurance grandparenting start day, it might be treated differently than usual. Even if it would normally be called life financial reinsurance, it will be treated as life reinsurance instead. This special treatment lasts from your reinsurance grandparenting start day until either the end of the contract (as stated in the original contract) or 5 years after your reinsurance grandparenting start day, whichever comes first.

Your reinsurance grandparenting start day is important to know. It’s either 1 July 2010 if you don’t have an early life regime application day, or it’s your early life regime application day if you do have one.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM3112435.

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Part E Timing and quantifying rules
Terminating provisions: Entry to new life insurance regime: transitional and miscellaneous provisions

EZ 62Reinsurance transition: life financial reinsurance may be life reinsurance

  1. If a life contract that is entered into before a life insurer's reinsurance grandparenting start day would be a contract for life financial reinsurance but for this section, then it is treated as life reinsurance, instead of life financial reinsurance, for the period starting on the reinsurance grandparenting start day, and ending on the earlier of,—

  2. the last day of the term of the contract, as that term is stated in the contract before the reinsurance grandparenting start day; and
    1. the day 5 years after the reinsurance grandparenting start day.

      1. Reinsurance grandparenting start day means—

      2. 1 July 2010, if the life insurer does not have an early life regime application day; or
        1. a life insurer's early life regime application day, if the life insurer has an early life regime application day.

          Notes
          • Section EZ 62: inserted, on , by section 199(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).