Which of the following best describes the seven-pay test?

Which of the following best describes the seven-pay test?

The seven-pay test is best described as: The seven-pay test assures that life insurance policies meet the legal definition of life insurance and do not become MECs. The correct answer is: Premiums paid in a seven-year period cannot be more than the total annual premiums in a seven-year paid-up policy.

See also  Is life insurance 1099-R taxable?