---
title: "ModifiedEndowmentContract"
url: "https://developers.zinnia.com/apis/policy-service-0-1-0/versions/8306e031-b41c-452a-a7ed-d73d65602086/schemas/ModifiedEndowmentContract"
---

> Full API specification: https://developers.zinnia.com/apis/policy-service-0-1-0/versions/8306e031-b41c-452a-a7ed-d73d65602086.md

# ModifiedEndowmentContract

## OpenAPI definition

```yaml
openapi: 3.0.0
info:
  title: Policy Service
  version: 0.0.21
servers:
  - url: https://qa.api.zinnia.io
components:
  schemas:
    ModifiedEndowmentContract:
      type: object
      properties:
        modifiedEndowmentContractTestDate:
          type: string
          format: date
          description: The MEC Test Date refers to the last date on which the life
            insurance policy was tested to determine whether it qualifies as a
            Modified Endowment Contract (MEC) under IRS regulations. This date
            is updated whenever a new MEC test is performed, ensuring the policy
            remains compliant with federal tax rules
          example: 2023-01-01
        amountExcessToModifiedEndowmentContract:
          type: number
          format: double
          description: The Amount Excess to MEC refers to the excess premium amount paid
            into a life insurance policy beyond the IRS-imposed Modified
            Endowment Contract (MEC) limit. This excess must be reimbursed,
            adjusted, or restructured to prevent the policy from becoming a MEC,
            which would alter its tax treatment
          example: 0
        modifiedEndowmentContractStatusDate:
          type: string
          format: date
          description: The MEC Status Date refers to the exact date when a life insurance
            policy is classified as a Modified Endowment Contract (MEC) or
            confirmed as non-MEC. This date is critical for determining how
            future withdrawals and policy loans will be taxed
          example: 2023-01-01
        modifiedEndowmentContractStatus:
          type: boolean
          description: The MEC Status indicates whether a life insurance policy has been
            classified as a Modified Endowment Contract (MEC) under IRS
            regulations. This status determines the tax treatment of
            withdrawals, loans, and distributions from the policy
        sevenPayTestBasis:
          type: number
          format: double
          description: The 7-Pay Test Basis refers to the total cumulative premium paid
            into a life insurance policy during the first seven years (the 7-pay
            period), as measured against the IRS 7-Pay Test limit. This amount
            is used to determine whether the policy qualifies as a life
            insurance contract or is classified as a Modified Endowment Contract
            (MEC).
          example: 198
        sevenPayPremium:
          type: number
          format: double
          description: The 7-Pay Premium refers to the maximum allowable premium that can
            be paid into a life insurance policy during the first seven years
            without triggering Modified Endowment Contract (MEC) status. It
            ensures that the policy remains a tax-advantaged life insurance
            contract rather than an investment vehicle
          example: 19807.51079
        sevenPayStartDate:
          type: string
          format: date
          description: The 7-Pay Start Date / Material Change Date refers to the date when
            the 7-Pay Test period begins. This is initially set at policy
            issuance (matching the Policy Start Date) and resets whenever a
            material change occurs that affects the policy’s funding limits
          example: 2023-01-01
        sevenPayPeriod:
          type: string
          format: date
          description: "The 7-Pay Period refers to the time frame during which the policy
            must comply with the 7-Pay Test to avoid Modified Endowment Contract
            (MEC) status. It starts on the 7-Pay Start Date (initially set at
            policy issuance) and lasts for seven years. The 7-Pay Period
            Expiration Date is calculated as: 7-Pay Expiration Date=7-Pay Start
            Date+7 Years"
          example: 2030-01-01
        sevenPayLimit:
          type: number
          format: double
          description: The 7-Pay Limit refers to the maximum total premium that can be
            paid into a life insurance policy within the first seven years
            without triggering Modified Endowment Contract (MEC) status. It is
            the benchmark used in the 7-Pay Test to determine whether a policy
            remains a tax-advantaged life insurance contract
          example: 0
        yearInPeriod:
          type: integer
          format: int32
          description: The Year in Period refers to the current year within the seven-year
            time frame of the 7-Pay Test. It is crucial because the 7-Pay Limit
            increases each year, and the test is updated annually to ensure the
            policy remains within IRS limits
          example: 0
        unnecessaryPremium:
          type: number
          format: double
          description: The Unnecessary Premium refers to the amount of premium that
            exceeds the limit set by the Nonforfeiture Premium Test (NPT Test).
            If premium payments are higher than the NPT limit, this amount is
            flagged as unnecessary premium, which may need to be refunded,
            adjusted, or redirected
          example: 232.12
```