A life insurance policy written after 1988 that fails to meet the seven-pay test is known as

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D Rationale: A life insurance policy written after 1988 that fails to meet the seven-pay test is known as a modified endowment contract. This classification indicates that the policy has exceeded allowable premium limits, resulting in different tax treatment compared to traditional life insurance.

An endowment policy is incorrect because it is designed to pay a benefit either upon death or after a specific period, not necessarily tied to the seven-pay test.

A modified life policy is also wrong, as this term typically refers to policies with adjusted premium payments over time, rather than a failure of the seven-pay test.

A single premium contract is incorrect because it involves a one-time premium payment for the entire policy, which does not relate to the seven-pay test or the modification of endowment contracts.

California life and Health Insurance Exam Prep

A life insurance policy written after 1988 that fails to meet the seven-pay test is known as