[318]                              The Mosten contract states its Investment Accounts are “savings pools within our general funds”. The Atwater contract similarly describes the Investment Accounts as “savings pools to which your premiums are directed” and expressly states in bold text, “The Policyowner does not purchase units in any index nor a legal interest in a security.”

[319]                              Based upon the contract language, I am satisfied that the subject contracts are not related or connected to reserves that vary based upon the market value of a specified group of assets segregated from the other assets of the insurer. Rather, the language satisfies me that the reserves for these universal life policies are the general reserves of the insurers.

[320]                              This conclusion is supported by the decision of the Federal Court of Appeal in Canada v National Life Assurance Company of Canada, 2008 FCA 14, 371 NR 299, where, for the Court, Ryer J.A. discusses in detail the characteristics of segregated fund policies, which he notes are also known as variable insurance. Therein, he discusses in detail that, for income tax purposes, Segregated Fund Policies are considered to be so fundamentally different from other life insurance policies that they are governed by specific rules under the Income Tax Act and the reserves for Segregated Fund liabilities are separately calculated from the general reserves of insurance companies.