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7702A Reduction in Benefits Testing: A Simplified Approach

reflective of the reduced benefits. If the policy’s premiums would have failed the Seven-Pay test based ... test. The test is performed by applying the policy’s actual premium and withdrawal history against the ...
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Description: This article poses an equivalent alternative method of conducting Reduction in Benefit Testing. Such a method may benefit companies by reducing the amount of data necessary to perform the test. This is Part 1 of a two-part series.
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- Authors: Larry Hersh
- Date: Feb 2022
7702A Reduction in Benefits Testing: A Simplified Approach

the test. Under the traditional method, the policy’s full premium history is used to determine the MEC ... determination of a MEC status, a determination of the premium(s) that must be refunded to the policy owner to bring ...
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Description: This article provides an alternative method to the computation of the Reduction in Benefits Test under 7702A. Part 1 provided for reduction in death benefits. Part 2 provides for reduction in Qualified Additional Benefits.
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- Authors: Larry Hersh
- Date: May 2022
- Competency: Technical Skills & Analytical Problem Solving
- Publication Name: Taxing Times
- Topics: Life Insurance; Public Policy

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