Leveraged insurance policy

A life insurance policy (other than an annuity contract) 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 in an investment account in respect of the policy, or
  • payable (and the interest thereon) under a policy loan taken out in accordance with the policy's terms;
• either:
  • the return credited to an investment account in respect of the policy is determined by reference to the rate of interest on the borrowing or policy loan and 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.

Section 1