Common use of Modified Endowment Contract Clause in Contracts

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.

Appears in 2 contracts

Sources: Flexible Premium Variable Universal Life Insurance Policy (Sun Life (N.Y.) Variable Account J), Flexible Premium Variable Universal Life Insurance Policy (Sun Life of Canada U S Variable Account G)