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Statutes of Newfoundland 1997


CHAPTER 11

CHAPTER 11

AN ACT TO AMEND THE INSURANCE
COMPANIES TAX ACT

(Assented to May 20, 1997)

Analysis

1. S.2 Amdt.
Definitions

2. S.3 Amdt.
Imposition of tax

Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows:


RSN1990 cI-11 as amended

1. (1) Paragraph 2(d) of the Insurance Companies Tax Act is amended by adding immediately after the words "and includes" the words "a person who administers a contract of insurance under an administrative services only plan or any other financial arrangement which provides group insurance, and".

(2) Section 2 of the Act is amended by adding immediately after paragraph (d) the following:

(d.1) "contract of insurance" includes an administration services only contract or any other financial arrangement for group insurance;

(3) Section 2 of the Act is amended by adding immediately after paragraph (h) the following:

(h.1) "group insurance" means a policy of insurance or any other financial arrangement that covers a specified group and other persons and gives protection against risk to an individual such as death, disability, loss of income due to illness or accident, and payments for supplemental health care, drugs, dental and other expenses;

(4) Section 2 of the Act is amended by adding immediately after paragraph (m) the following:

(m.1) "plan holder" means, with regard to group insurance, the person who holds the group insurance on behalf of the insured members;

2. Subsection 3(2) of the Act is repealed and the following substituted:

(2) Notwithstanding subsection (1), a company which administers a contract of insurance under an administrative services only plan, or any other financial arrangement, shall pay a tax equal to 4% of the value of benefits paid out of the plan as well as any dues, assessments, and administrative costs or fees charged to the plan holder, policy or program of insurance.

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