Entity A issues a deferred annuity contract whereby the policyholder will receive, or can elect to receive, a life-contingent annuity at rates prevailing when the annuity begins.
This is not an insurance contract at inception if the insurer can reprice the mortality risk without constraints. However, it will become an insurance contract when the annuity rate is fixed (unless the contingent amount is insignificant in all scenarios that have commercial substance). [IFRS 4.IG2 E1.7].
In practice, in the accumulation phase of an annuity, there are other guaranteed benefits such as premium refunds that might still make this an insurance contract prior to the date when the annuity rate is fixed.
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