Amount of paid-up policy to be obtained in exchange for life policy
24.—(1)  On the exchange of a life policy under section 60 (3) of the Act for a paid-up policy, the paid-up policy shall be for the amount determined, as at the date of exchange, by the following formula:
 
A
 
 
 
 
B
 
 
 
 
Where
A is the surrender value in dollars of the policy exchanged, less any sums due under the policy to the insurer; and
 
B is the value of an insurer’s liabilities in respect of a paid-up policy for one dollar payable on the like contingencies as the policy moneys under the policy exchanged.
(2)  The surrender value referred to in the formula in paragraph (1) shall be calculated in the manner specified under regulation 23 for surrenders under section 60 (1) of the Act, and the liabilities referred to in that formula shall be valued on the basis as prescribed in regulation 23(2).
[S 466/2002 wef 01/10/2002]