- 3 - DIVIDEND PROVISIONS Annual Dividends.--While this policy is in force other than as extended or reduced paid-up insurance, the portion, if any, of the divisible surplus of the Company accruing upon the policy at each policy anni- versary will be determined annually by the Board of Directors, and will be credited to the policy as a dividend on such anniversary provided all premiums due hereunder have been paid in full to such anniversary and the Insured is living at that time. (Notice.--There probably will not be any divisible surplus from which to credit any dividend to this policy before the third policy anniversary.) Upon proper written request to the Home Office, any such dividend may be (1) paid in cash, or (2) applied to the reduction of any premium then due, or (3) applied at the net single premium rate at the Insured’s attained age to provide a paid-up life insur- ance addition, or (4) left to accumulate with compound interest at the rate authorized from time to time by the Board of Directors, but not less than 2½% per annum. If no other option has been elected within 31 days after the policy anniversary, any such dividend will be paid in cash * * *. Upon proper written re- quest to the Home Office, * * * any dividend accumula- tions may be withdrawn unless * * * they have been applied to modify any non-forfeiture value as provided in the policy or are required as security for a loan on the policy. * * * In the application for the Prudential policy, petitioner elected to have dividends accumulate with interest. During 1969, Mr. Seaman purchased a life insurance policy (USAA policy) on his life from USAA Life Insurance Company (USAA) that was in force at least throughout 2003. The USAA policy provides in pertinent part: DIVIDENDS. At the end of the second Policy year and annually thereafter, while in force except as extended term insurance, this Policy shall be credited with suchPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 NextLast modified: November 10, 2007