Common use of Right to Refund Clause in Contracts

Right to Refund. We will inform you if we receive a premium payment that affects the tax qualification of this contract as described in Section 7702 of the Internal Revenue Code, as amended. We will offer you the choice of a refund of the premium or the option to increase the Specified Amount subject to our underwriting requirements. If you choose to increase the Specified Amount and the Insured fails to meet our underwriting requirements for the required increase in coverage, we have the right to refund, with interest, any premium that would cause your contract to violate Section 7702.

Right to Refund. We will inform you if we receive a premium payment that which affects the tax qualification of this contract as described in Section 7702 of the Internal Revenue Code, as amended. We will offer you the choice of a refund of the premium or the option to increase the Specified Amount subject to our underwriting requirements. If you choose to increase the Specified Amount and the Insured fails to meet our underwriting requirements for the required increase in coverage, we have the right to refund, with interest, any premium that would cause your contract to violate Section 7702.