39Prohibition of reinsurance between funds

#### 39 Prohibition of reinsurance between funds (1) In order to avoid doubt, it is declared that a life company contravenes this Part if it engages in the practice of reinsurance between statutory funds of the company. (2) For the purposes of subsection (1), the practice of reinsurance between statutory funds consists of the following elements: (a) part of the premium payable under a policy referable to one statutory fund is credited to another statutory fund to which the policy is not referable (the reinsuring fund); (b) a corresponding proportion of the liability under the policy is treated as a liability for the discharge of which the assets of the reinsuring fund are available.