2820.This section contains the first of the four conditions referred to in section 735(1)(c) and restricts the period for which benefits may be paid if the exemption is to apply. It must be satisfied by all health or employment insurance policies. The section is based on section 580A of ICTA.
2821.Under subsections (1) and (2) the policy may only provide for payments to be made during periods of ill-health or unemployment or while the insured’s income is lower than it would otherwise have been. Periods which end in the insured’s death and which immediately follow one of these periods are also included. Subsection (2)(b) treats a period throughout which the insured does not hold office as a period in respect of which payments may be made. Section 580A(4)(b) of ICTA, on which it is based, does not. See Change 123 in Annex 1.