- 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tions may be withdrawn unless * * * they have been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 such
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: November 10, 2007