Words and Phrases - "policy"

In order for Regulation 1400(e) to include reinsurance rate adjustments, words such as "and increased reinsurance premiums" should have followed the word "claim" where it first appears in that paragraph. Accordingly, the taxpayer could not deduct reserves for reinsurance rate adjustments that it estimated would be ultimately payable by it in respect of risks that had been assumed by reinsuring companies. Bowie TCJ. also noted (at p. 1221) that "the word 'policy' as it is used there, can only refer to a policy of insurance written by the Appellant, and not to a policy reinsurance ceded by it to another company".