Common use of Refunds of Premiums Clause in Contracts

Refunds of Premiums. Paragraph (1)(E) shall not apply to any re- fund on the death of the insured, or on a complete surrender or cancellation of the contract, which cannot exceed the aggregate premiums paid under the contract. Any re- fund on a complete surrender or cancellation of the contract shall be includible in gross income to the extent that any deduction or exclusion was allowable with respect to the premiums.

Refunds of Premiums. Paragraph (1)(E) shall not apply to any re- fund refund on the death of the insured, or on a complete surrender or cancellation of the contract, which cannot exceed the aggregate premiums paid under the contract. Any re- fund refund on a complete surrender or cancellation of the contract shall be includible includable in gross income to the extent that any deduction or exclusion was allowable with respect to the premiums.