- 4 - Pacific Life classified these distributions as policy loans. For each distribution, Pacific Life issued to petitioner a policy loan statement indicating the amount of the loan, the interest charged, and the outstanding loan balance. Petitioner was not required to sign any formal loan agreements with respect to these distributions. Petitioner never contacted Pacific Life regarding the classification of these distributions as policy loans. Throughout the life of the policy, Pacific Life sent petitioner an account statement at the end of each policy year reporting the following: Beginning accumulated value for the year, premiums paid, premium load charge, cost of insurance charges (mortality charges, administrative charges, insurance loads, and rider charges), interest earned, withdrawal amount, dividends earned, the accumulated value at the end of the year, current surrender charge, current loan debt (including unpaid loan interest), and current cash surrender value. According to the account statements, the accumulated value of the policy on July 16, 1988, increased from $5,729 to $23,467 as of July 16, 2001. On August 7, 2001, petitioner surrendered the policy. As of that date, petitioner’s investment in the policy was $14,565, the accumulated value was $23,509, the outstanding loans plus accrued interest payable was $23,125, and the cash surrender valuePage: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011