- 3 -
portions of indebtedness owing on petitioner’s credit cards in
the event of death, disability, or unemployment.2
Due to the Defense Base Closure and Realignment Commission
which closed Kelly AFB in 2001, petitioner lost his employment at
Kelly AFB on November 6, 2000. Because of petitioner’s
unemployment, petitioner satisfied one of the contingencies
provided by the credit card insurance policies he carried. Thus,
petitioner applied for insurance benefits pursuant to the credit
card insurance policies from American Security and Capital One.
Petitioner remained unemployed for most of 2001. Accordingly,
payments were made during 2001 by American Security and Capital
One to the banks that had issued the credit cards in partial
payment of amounts due by petitioner on his credit cards. During
2001, petitioner owed approximately $45,000 in credit card debt.
Pursuant to the terms of the credit card insurance
contracts, American Security paid $11,396 to the applicable bank
in partial payment of petitioner’s credit card debt and Capital
One paid $4,448 to the applicable bank in partial payment of
petitioner’s credit card debt. As a result of paying
petitioner’s credit card obligations, American Security and
Capital One reported these payments to the Internal Revenue
2The record does not reflect the amounts paid as premiums
for such insurance or how such premiums were paid.
Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011