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Volume 59, No. 10

154/2016

The British Columbia Gazette,

Part II

June 14, 2016

B.C. Reg. 154/2016 , deposited June 13, 2016, under the INSURANCE PREMIUM TAX ACT [sections 1, 7, 11 and 41]. Order in Council 408/2016, approved and ordered June

13, 2016.

On the recommendation of the undersigned, the Lieutenant Governor, by and with

the advice and consent of the Executive Council, orders that

(

a) the attached Insurance Premium Tax Regulation is made, and

(

b) the following regulations are repealed:

(

i) the Approved Plan Regulation, B.C. Reg. 143/2005;

(ii) the Insurance Premium Tax Act Classes of Insurance Regulation, B.C. Reg. 175/2012;

(iii) the Insurance Premium Tax Act Interest Regulation, B.C. Reg. 52/2003;

(iv) the Taxable Insurer Regulation, B.C. Reg. 77/94.

— M. DE JONG, Minister of Finance ; S. CADIEUX, Presiding Member of the Executive Council .

INSURANCE PREMIUM TAX REGULATION

Contents

Definition

Taxable insurer – prescribed insurer

Taxable insurer – prescribed class of insurers

Taxable premium – approved medical services and health care plans

Classes of insurance

Instalment payments threshold

Calculation of interest

Definition

1 In this regulation, “Act” means the Insurance Premium Tax Act .

Taxable insurer – prescribed insurer

2 For the purposes of paragraph (

b) of the definition of “taxable insurer” in

section

1 of the Act, the Insurance Corporation of British Columbia is a prescribed insurer.

Taxable insurer – prescribed class of insurers

(1) For the purposes of paragraph (

c) of the definition of “taxable insurer” in

section

1 of the Act, each of the following groups of persons constitutes a prescribed class

of insurers:

(

a) persons who are members of a reciprocal exchange, as defined in

section 186

of the Financial Institutions Act , for which a permit under

section 187 of that Act has been issued and is in effect;

(

b) companies that are registered under the Insurance (Captive Company) Act ;

(

c) insurers that meet the requirements of subsection (2).

(2) For the purposes of subsection (1) (c), an insurer must be a purely mutual

corporation

(

a) that is exempt from the application of Parts 1 to 10 of the Financial Institutions Act , and

(

b) whose insurance business in British Columbia is restricted solely to the insurance

of churches, schools or other religious or charitable institutions.

Taxable premium – approved medical services and health care plans

4 For the purposes of paragraph (

d) of the definition of “taxable premium” in

section 1

of the Act, a medical services or health care plan that meets the following criteria

is approved:

(

a) the plan is established and managed by an insurance company or an extraprovincial

insurance corporation that

(

i) is authorized to carry on insurance business under the Financial Institutions Act , and

(ii) is a non-profit corporation;

(

b) the plan provides for the payment of benefits directly to a person entitled

to practise a designated health profession under the Health Professions Act .

Classes of insurance

5 For the purposes of the Act, “accident and sickness insurance” , “aircraft insurance” , “automobile insurance” , “hail insurance” , “life insurance” and “marine insurance” have the same meanings as in the Classes of Insurance Regulation under the Financial Institutions Act .

Instalment payments threshold

6 For the purposes of

section 7 (1) of the Act, the amount prescribed is $25 000.

Calculation of interest

7 For the purposes of sections 7 (5) and 11 (2) and (3) of the Act, interest payable

on amounts due to the government must be

(

a) calculated at the rate prescribed under the Interest Rate under Various Statutes

Regulation, B.C. Reg. 386/92, and

(

b) calculated on a daily basis and compounded monthly.

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