150.1(1)This section does not apply to a contract that provides an annuity or that is prescribed by regulation.

150.1(2)With respect to a contract for which an exempt policy has been issued, subject to any lesser amount provided for in the contract, the funds held in a side account cannot exceed the sum of

150.1(3)With respect to a contract for which an exempt policy has been issued but, after issue, ceases to be an exempt policy, the funds held in a side account cannot exceed the funds required to pay future costs of insurance, related premium taxes, administrative fees or charges.

150.1(4)The funds referred to in subsections (2) and (3) shall be determined from time to time by the insurer on an actuarial basis based on the expected remaining lifetime of the person whose life is insured under the contract.

150.1(5)Any funds that exceed the limits set out in subsection (2) or (3) shall not be considered premiums, and shall not be held in a contract or in a side account regardless of the date of issuance of the policy.