Which of these statements describe a modified endowment contract (mec)?

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10-01-2018
Biology

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Which of these statements describe a modified endowment contract (mec)?

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Erudite1 Erudite1 · Answer 1 · 2018-01-19T11:34:32+01:00

The statement which describes a modified endowment contract is this: 'Exceed the maximum amount of premium that can be paid into a policy and still have it recognized as a life insurance contract.
A modified endowment contract is a type of life insurance contract which has been funded with more money than allowed. Such a life insurance will no longer be regarded as life insurance by IRS, it will be considered as a modified endowment contract.