1.88 Definition. [A] 10/8 policy… means, in addition to the factors described in ¶1.89, a life insurance policy (other than an annuity) where an amount is or may become:
- payable under the terms of a borrowing, to a person or partnership that has been assigned an interest in the policy or an investment account in respect of the policy; or
- payable under a policy loan made in accordance with the terms and conditions of the policy.
An amount payable under a policy loan at a particular time refers to the amount of the policy loan and the interest on that policy loan that is outstanding at that time.
1.89 Additional components. In addition, … either:
- the return credited to an investment account in respect of the policy (the Return) is determined by reference to the rate of interest on the borrowing or policy loan described in ¶1.88, and the Return would not be credited to the account if the borrowing or policy loan were not in existence; or
- the maximum amount of an investment account in respect of the policy is determined by reference to the amount of the borrowing or policy loan described in ¶1.88.