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share of the divisible surplus of the participating
business of the Company as may be apportioned thereto
by the Company.
Options. At the option of the Owner each dividend may
be
(a) paid in cash, or
(b) applied in reduction of any premium then due,
or
(c) applied to provide a participating paid-up
addition to the Amount of Insurance under this Policy
(hereinafter called life addition), or
(d) left to accumulate to the credit of this
Policy with interest, as determined by the Company, at
not less than 2½% per annum, compounded annually (here-
inafter called dividend accumulation), or
(e) applied to purchase a non-participating one
year term insurance addition (hereinafter called term
addition), payable in event that the Insured’s death
occurs within one year from the date on which such
dividend becomes due, but terminating without grace or
notice at the end of one year from the due date of such
dividend.
Any option may be elected in the application for this
Policy or by written request to the Company at its Home
Office and such election will be effective until re-
voked; * * *. Election of any option or revocation
thereof shall apply only to dividends becoming due
thereafter, except that, at the option of the Owner,
election of any option may be made retroactive to a
dividend due within thirty-one days prior thereto. If
no dividend option is elected prior to the date a
dividend becomes due or within thirty-one days thereaf-
ter, such dividend will be applied by the Company under
Option (d) * * *.
At any time * * * dividend accumulations * * * may be
withdrawn. * * *
In the application for the USAA policy, Mr. Seaman elected to
have dividends accumulate with interest.
On July 24, 1986, petitioner and Mr. Seaman divorced pursu-
ant to an agreed final decree of divorce (petitioner’s divorce
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Last modified: November 10, 2007