What does Section 7702 mean? Read on to discover the definition & meaning of the term Section 7702 - to help you better understand the language used in insurance policies.
Section 7702 refers to a section in the Internal Revenue Code, or the tax code of the United States, that details what constitutes a life insurance contract, explains how a life insurance contract is taxed, especially if the contract has cash value component, and sets certain limitations on premiums and death benefits. It does not apply to life insurance policies issued before 1985.
More Insurance Terms And Definitions
The Merriam-Webster Dictionary defines insurance as:
b: Coverage by contract whereby one party undertakes to indemnify or guarantee another against loss by a specified contingency or peril.
c: The sum for which something is insured.
We hope the you have a better understanding of the meaning of Section 7702. If you are looking for the meanings of other important insurance terms and their definitions, just click on the letter below to find the words & concepts you are looking for: