Modified Endowment Contract Clause Samples
Modified Endowment Contract. At the time a Premium is received that would, in Our opinion, cause this Policy to become a modified endowment contract based on Our reasonable interpretation of Section 7702A of the Internal Revenue Code, We will so notify You or Your sales representative within one Business Day, and will not credit the Premium unless We have received specific instructions to do so. Any such Premium received will be held, for a period of time no greater than 90 days, in a non-interest bearing account. This Premium will be refunded at the end of the 90-day period if we have not, at that time, received specific instruction from You or Your sales representative concerning the Premium.
Modified Endowment Contract. At the time a Premium is received that would, in Our opinion, cause the Policy to become a modified endowment contract based on reasonable industry interpretations of Section 7702A of the Internal Revenue Code, We will so notify You and will not credit the Premium unless We have received specific instructions from You to do so. If such instructions are not received within 24 hours of the date we send You notification, the Premium will be immediately returned to You.
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