qualifying insurance policy

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:

1. can be used only to pay or fund employee benefits under a defined benefit plan;
2. are not available to the reporting entity’s own creditors (even in bankruptcy) and cannot be paid to the reporting entity, unless either:
3. 1. the proceeds represent surplus assets that are not needed for the policy to meet all the related employee benefit obligations; or
   2. the proceeds are returned to the reporting entity to reimburse it for employee benefits already paid.

(According to International Accounting Standards IAS 19)