Part 6

Exempt income
Chapter 8

Other annual payments

Health and employment insurance payments

Conditions to be met where policies are linked
740
1
The conditions in this section only apply if—
a
the insured is or has been the insured under one or more other policies (“connected policies”), and
b
each of the connected policies has been in force either—
i
at a time when the policy in question was in force, or
ii
at the time immediately before it was entered into.
2
The conditions are that so far as the terms of the policy relate to the health or employment risk—
a
they do not differ significantly from what they would have been if no connected policies had been entered into, and
b
the way in which they are given effect does not differ significantly from the way in which they would have been given effect in that case.
3
A difference relating only to the reduction of benefits payable to or in respect of a person under the policy because of benefits being payable to or in respect of the person under any of the connected policies is to be ignored.
4
For the purposes of this section, all the persons for whose benefit the policy provides insurance against the health or employment risk are to be considered.