If a policyowner unintentionally pays premiums in excess of the MEC guidelines, the excess premium can be refunded by the insurer within how many days after the end of the contract year?

• A. 30 Days
• B. 60 Days
• C. 90 Days
• D. 120 Days

Answer: (B)

Excess premium payments are corrected to avoid unintended MEC (Modified Endowment Contract) status. If a policyowner pays more than the annual MEC limit, the insurer is allowed to refund the excess within a fixed period after the end of the contract year. The rule sets this window at 60 days, which is why 60 days is the best answer. This timing helps preserve the policy’s intended tax treatment and prevent the policy from being treated as a MEC due to an overpayment. The other time frames don’t match this mandated window.