Regulation 11

Where a policy owner exchanges a life policy issued before 23rd August 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:where A is the surrender value in dollars of the policy exchanged, less any sums due under the policy to the insurer; andB is the value of the liabilities of the insurer in respect of a paid-up policy for one dollar payable on the like contingencies as the policy moneys under the policy exchanged.

A licensed insurer shall calculate the surrender value referred to in the formula in paragraph (1) in the manner specified under regulation 10(1) and the liabilities referred to in the formula shall be valued on the basis set out in regulation 10(2).