Qualifying insurance policy is an insurance policy issued by an insurer that is not a related party (as defined in IAS 24) of the reporting entity, if the proceeds of the policy:
(a) can be used only to pay or fund employee benefits under a defined benefit plan;
(b) are not available to the reporting entity’s own creditors (even in bankruptcy) and cannot be paid to the reporting entity, unless either:
- the proceeds represent surplus assets that are not needed for the policy to meet all the related employee benefit obligations; or
- the proceeds are returned to the reporting entity to reimburse it for employee benefits already paid.
Qualifying insurance policy is specifically discussed in IAS 19 Employee Benefits.
Source: Glossary of Terms of IFRSs as at 31 December 2008.
