DocketNumber: Docket No. 2364-71
Citation Numbers: 61 T.C. 605, 1974 U.S. Tax Ct. LEXIS 156, 61 T.C. No. 65
Judges: Tannenwald,Raum,Hall
Filed Date: 2/4/1974
Status: Precedential
Modified Date: 1/13/2023
*156
Decedent was a participant in his corporate employer's employees' pension plan, which plan qualified under
*605 OPINION
Respondent determined a deficiency in estate tax of petitioner in the amount of $ 4,193.85.
The issue for decision is whether the proceeds of two contracts, providing that upon their maturity date they were exchangeable for contracts providing for an annuity or annuities as selected by the owner from certain annuity options which had been purchased by a qualified pension trust established by the employer of Max Silverman (the decedent) for the benefit of decedent or the beneficiaries designated by *606 him, but unconditionally assigned to decedent upon the termination of his employment prior to his attaining the specified retirement age without being exchanged for a selected annuity contract, are includable in decedent's gross estate or should be excluded under the provisions of
All of *161 the facts have been stipulated and are found accordingly.
Blanche S. Silverman, the executrix of the Estate of Max Silverman, deceased, resided in New York, N.Y., at the time the petition in this case was filed. She filed on behalf of the estate a Federal estate tax return with the district director of internal revenue for lower Manhattan.
Max Silverman, hereinafter referred to as the decedent, was born on August 11, 1896, and died at the age of 70, a resident of the State of New York, on October 21, 1966.
Letters testamentary were granted on November 9, 1966, by the Surrogate's Court, New York County, State of New York, to Blanche S. Silverman as executrix of decedent's estate.
Decedent was employed on July 30, 1942, and had been employed prior thereto by I. Schneierson & Sons, Inc., hereinafter referred to as Schneierson. Decedent continued in the employ of Schneierson until August of 1957 when he terminated his employment at the age of 61.
Schneierson entered into an agreement dated July 30, 1942, with certain of its employees and the Public National Bank & Trust Co. of New York as trustee (now Bankers Trust Co.) creating and establishing a pension trust, effective as of July *162 30, 1942. The original agreement dated July 30, 1942, was amended a number of times prior to December 5, 1944, on which date the pension trust agreement including all amendments was rewritten into a single instrument dated December 5, 1944. After December 5, 1944, the pension trust agreement was amended on several occasions prior to the date of decedent's termination of his employment with Schneierson but none of these amendments is relevant to the issues herein.
By letter dated December 26, 1944, the Commissioner of Internal Revenue approved the pension trust agreement as a qualified pension trust under the provisions of
Decedent as an employee of Schneierson was entitled to and did in fact become a participant in the pension trust agreement. The pension trust agreement was a noncontributing plan and decedent made no contributions to the plan.
*607 Article 4 of the pension trust agreement provided for a pension trust committee of five members who were required to be employees of Schneierson. Decedent was not a member of this committee*163 at any time nor was decedent a stockholder of Schneierson.
Article 5, section 8, of the pension trust agreement provided that as soon as practicable, but not later than 3 months after application by an eligible employee to become a participant in the pension trust plan, the Pension Trust Committee shall apply to a life insurance company or companies selected by it for contract or contracts for the benefit of such employee, which contracts shall provide for the benefits set forth in the pension plan. The application for contract and the contracts shall nominate and designate the trustee of the pension trust plan as the sole owner of the contracts, except that these contracts shall provide that the income payable after the retirement date shall be payable to the employee participant and shall provide for beneficiaries other than the trustee to receive settlement of any amount due in case of the employee participant's death.
Pursuant to the provisions of this section of the pension trust agreement, the Pension Trust Committee made application after decedent became eligible as a participant under the pension trust agreement for retirement annuity contracts for the benefit of decedent*164 and thereafter five such annuity contracts were issued for the benefit of decedent.
Article 8 of the pension trust agreement provided that the normal retirement date in respect of any participant shall be the anniversary date of the contract obtained for his benefit nearest to his 65th birthday. Article 8 further provided that if the participant remained employed by the company after his normal retirement age, he would nevertheless begin receiving his annuity at the anniversary date of the policy as if he had retired. The pension trust agreement provided as follows with respect to the handling of these contracts upon a participant's reaching retirement age:
3. Upon attainment of retirement age, the Participant shall become entitled to the Contract or Contracts taken out for him and upon written notice to it from the Committee the Trustee shall either mail or otherwise deliver such Contract or Contracts (either without endorsements or endorsed in such manner as the Committee will approve) to such Participant, whereupon such Participant shall cease to be a party hereto.
4. The Committee after consulting with the Participant shall choose the options available under any Contract or *165 Contracts under which payments are to be made for the benefit of such Participant during his lifetime after such retirement. Such choice of options shall be made by the Committee at least thirty days before the normal retirement date of such Participant or at such later date as the Committee shall deem advisable. Upon receipt of instructions from the Committee with respect to the choice of options made by the Committee, the Trustee shall elect the option or options chosen by the Committee. The options which the Committee may choose shall be those available in the respective Contracts issued by *608 the Issuing Companies from which such contracts are purchased and those thay [sic] be available by Agreement with any such issuing Company for the respective Contracts except that any such options must provide for income commencing on the retirement date which will last at least for the remaining lifetime of the Participant thereafter.
Article 10 of the pension trust agreement provides as follows with respect to termination of services by an employee participant:
1. In the event that the employment of any Participant by the Corporation or the Subsidiary shall terminate during his*166 lifetime or prior to his normal retirement date and regardless of the cause of such termination, and whether it is voluntary or involuntary, the Committee shall immediately give a written notice to the Trustee of such termination and the date thereof. In such event the contributions of the Corporation and the Subsidiary to the cost of the benefits provided for such Participant shall cease.
2. Thereupon, the Committee, in its discretion, after conferring with the Participant, if it deems such conference feasible or advisable, shall subject to the provisions of ARTICLE XV, subdivision 12 hereof select any one of the following courses:
(a) Direct the Trustee to transfer and assign and deliver by mail or otherwise to said Participant any Contract or Contracts held by the Trustee for such Participant.
(b) Direct the Trustee to surrender any Contract or Contracts held by the Trustee to such Participant to the Issuing Company or Companies with instructions to obtain from such Issuing Company or Companies the cash value thereof or any other sum or sums remaining with such Issuing Company or Companies in connection with said Contract or Contracts and to pay over the same to such Participant.
*167 (c) Such selection shall be made by the Committee within thirty days after the termination of the Participant's employment or at such earlier or later date as the Committee may determine. The selection made by the Committee shall be communicated to Participant by the Committee to the Trustee, and the Trustee upon receipt thereof, shall adopt such selection and comply therewith.
3. If the employment of any Participant is terminated and Participant is reemployed by the Corporation or the Subsidiary, he shall be deemed under all provisions of this Agreement to be a new Employee of the Corporation or the Subsidiary as of the date of such re-employment, provifed [sic], however, that there shall be deducted from any Contract taken out for him at the time of his re-employment the amount of the benefits received by him under this Plan at the time of the termination of his earlier employment by the Corporation or the Subsidiary.
Upon the termination of decedent's employment by Schneierson, the Pension Trust Committee instructed the trustee to deliver five annuity contracts to decedent. On November 19, 1957, the trustee assigned each of the five contracts to decedent. The contracts assigned*168 to decedent were issued by the Equitable Life Insurance Co. of Iowa (hereinafter referred to as Equitable). Decedent prior to his death surrendered three of these contracts to Equitable and received the cash surrender value of each contract so surrendered. The remaining two contracts issued by Equitable for the benefit of decedent were policy No. A 44389 issued on July 30, 1942, and policy No. A 68865 issued on July 29, *609 1950. Each of these contracts provided for its maturity on July 30, 1961. Each contract provided that if decedent were living on the July 30, 1961, maturity date and the policy was in full force and effect, he would be paid a monthly lifetime annuity with a 120 months certain unless one of the options for a life annuity with a longer period certain or a joint and survivor annuity were selected. The option also provided for beginning the annuity at an earlier or later date but in no event later than the anniversary date of the contract nearest the annuitant's 70th birthday.
Contract No. A 44389 contained the following provision with respect to the method of commencement of the annuity:
16. Annuity Options
Upon the anniversary of this policy nearest to*169 the birthday upon which the Annuitant will attain the age elected for commencement of annuity payments, herein called the maturity date, this contract will mature and, subject to the rights of any assignee, the Company will issue a Supplementary contract in exchange for this policy providing for the payment of the annuity. The cash surrender value of the policy at maturity, as shown in Table A hereof, shall be used as a single premium to provide an annuity in accordance with either Table B or Table C hereof at the option of the Annuitant. The first payment of the annuity will be made at the maturity date and subsequent payments will be made monthly thereafter until the death of the Annuitant.
If a Life Annuity is elected in accordance with Table B, said annuity payments will terminate with the last monthly payment made preceding the death of the Annuitant. If a Refund Annuity is elected in accordance with Table C and the death of the Annuitant occurs before the total of annuity payments made by the Company is equal to the cash surrender value of the policy at the maturity date, the Company will continue the annuity payments to the beneficiary until the total annuity payments made*170 shall equal the said cash surrender value, except that upon the death of the last surviving beneficiary any such payments remaining will be commuted at the rate of three per cent per annum compound interest and paid in one sum to the executors or administrators of the said last surviving beneficiary. If the annuity payments payable to any beneficiary are less than ten dollars each, the Company reserves the right to commute any payments thereafter becoming due at the rate of three per cent per annum compound interest and make settlement thereof in one sum with the beneficiary entitled to receive said annuity payments.
If there be no beneficiary living at the death of the Annuitant then any further payments due under this contract will be commuted at the rate of three per cent per annum compound interest and paid in one sum to the executors or administrators of the Annuitant.
Contract No. A 68865 contained a substantially similar provision.
No premiums were paid on these contracts after July 31, 1956. Because of nonpayment of the annual premium due July 30, 1957, both contracts were left in force as of that date on the reduced paid-up annuity basis with the cash surrender value at*171 the date of lapse accumulating with interest.
*610 Each of these policies contained nonforfeiture provisions. The provision contained in policy No. A 44389 was as follows:
13. Nonforfeiture Provisions
(a) Automatic Paid-up Annuity
If after the payment of premiums for one full year or more, default is made in the payment of a subsequent premium, this policy shall upon such default without action on the part of the Annuitant, be continued as a fully paid-up participating annuity payable at the same time and under the same conditions as this policy. The amount of such annuity shall be such proportionate part of the income shown in Tables B and C as the cash surrender value of the paid-up annuity at the maturity date (as defined in paragraph 16 hereof) bears to the cash surrender value shown in Table A at the maturity date. Such paid-up annuity may be surrendered for its cash surrender value at any time which shall be the cash surrender value at time of default in premium payment accumulated at compound interest at such rate as the Company may determine but never less than three per cent per annum to the date of surrender. In the event of the death of the Annuitant after default*172 in premium payment and before any annuity payment is made said cash surrender value will be paid to the beneficiary upon receipt of due proof of such death and the surrender of this policy.
(b) Cash Surrender
After the end of the first policy year and after the payment of premium for one full year and before default in the payment of premium or within three months after such default, the Annuitant may, upon written request, with the consent of any assignee and of any beneficiary whose interest is irrevocable, elect to terminate this policy and receive the cash surrender value hereof as stated in Table A for the number of years that the policy has been carried in force.
Policy No. A 68865 contained a comparable provision except that it specifically stated that within 60 days after the default of any premium, the option might be elected to continue the policy as a participating paid-up annuity payable at the same time and under the same conditions as provided in the policy or to terminate the policy and receive the cash surrender value plus any outstanding dividend or accumulated dividends less indebtedness on the policy, but specifying that if no election were made, the policy would*173 be continued as a participating paid-up annuity.
Decedent left both contracts with Equitable, and as a result thereof interest was accumulated on the cash surrender value at the time premiums ceased to be paid for decedent's life. Decedent named his wife, Blanche S. Silverman, as the beneficiary under each of these Equitable contracts. During his life decedent made a loan on policy No. A 68865, and $ 2,407.22 of the loan remained unpaid at his death. On March 2, 1964, decedent deposited policy No. A 44389 as collateral for a loan of $ 10,000 which he made from the Manufacturers Hanover Trust Co. Although decedent's death occurred over 5 years after the maturity date stated in the policies and over 2 1/2 months after the anniversary date nearest his 70th birthday, decedent had not surrendered the policies for supplemental policies specifying the annuity *611 elected and at his death was receiving no annuity under either of these contracts.
Schneierson's plan, contained in the pension trust agreement in effect at the date of termination of decedent's employment, was terminated with approval of the Commissioner of Internal Revenue on February 10, 1958.
The assignment to decedent*174 on November 19, 1957, of each of the contracts obtained for his benefit recited that for a valuable consideration the trustee "hereby sells, assigns, transfers and sets over * * * its right, title, and interest in and to said policy, subject to all the terms and conditions in said policy." The assignment further provided that it was made pursuant to the provisions of the pension trust established by Schneierson.
After decedent's death, the proceeds of policy No. A 44389 which totaled $ 45,849.26 and the proceeds of policy No. A 68865 which totaled $ 54,725.12, after giving effect to a loan made by decedent during his lifetime of $ 2,407.22, were paid to Blanche S. Silverman, the widow of decedent, in accordance with the designation of her as beneficiary of the policies.
On the estate tax return no amount was included because of the receipt by Blanche S. Silverman of the proceeds of the two Equitable policies.
Under item 5 of Schedule F of the estate tax return, the following appeared:
Equitable Life Insurance Co. of Iowa -- two policies issued in name of decedent (policies #A68865 and A44389) payable on death to Blanche S. Silverman. Policies were issued in connection with a qualified*175 non-contributory employees Trust. Policies were distributed to decedent as an employee on his separation from service. The entire proceeds of $ 100,574.38 are excludable under
Respondent in his notice of deficiency increased the taxable estate as reported by the $ 100,574.38 with the explanation that "It is determined that the proceeds of two insurance policies in the amount of $ 100,574.38 are includable in the decedent's gross estate and that such amount is not excludable within the purview of
Initially, we point out that it is absolutely clear from the facts in this case that the proceeds of the two annuity contracts are includable in decedent's gross estate under the provisions of
*612 Petitioner*176 does not deny that except for the provisions of
*177 Petitioner states that it is clear that the payments of the proceeds of these contracts were payments received by Blanche S. Silverman under a contract purchased by an employee trust which formed part of a pension plan which at the time of decedent's separation from employment met the requirements of
Respondent's contention is that Blanche S. Silverman did not receive the proceeds under contracts purchased by Schneierson's pension trust but under contracts in effect purchased by decedent. Respondent contends that when the contracts were assigned to decedent in lieu of a *613 cash payment upon the termination of decedent's employment, decedent himself constructively received payment under the employees' pension plan and procured the annuity contracts. Respondent argues that therefore the beneficiary received the payments under contracts in effect acquired by decedent.
Respondent relies primarily on the case of
We agree with the*179 District Court that the decedent in fact had an option to select the manner in which his interest in the plans would be distributed. The exclusion of
Petitioner points to certain factual distinctions in the
In our view, as respondent contends, the facts in the cases of
However, the facts in this case are such that we need not decide whether, when decedent was assigned his complete interest in the pension trust by being assigned absolute right in the contracts which the trustee had procured for his benefit, he had any form of constructive receipt of his interest in the plan. When a person is granted an option to take cash or property of a value equal to that cash as was*181 the situation here at the time the policies were assigned to decedent, the actual receipt by that person of the property is clear. However, there remains a question whether under such circumstances the person may be said to have constructively received the cash he might have elected to take but did not and used it to purchase the property. In our view under the facts present in this case, the proceeds of the two annuity contracts received by decedent's widow are not excludable from decedent's gross estate under
In our view, in order for a payment to be exempt from estate tax under the provisions of
If such amounts payable after the death of the decedent under a plan described in paragraph (1) * * *, are attributable to any extent to payments or contributions made by the decedent, no exclusion shall be allowed for that part of the value of such amounts in the proportion that the *185 total payments or contributions made by the decedent bears to the total payments or contributions made. * * *
In our view, this provision, though dealing with a problem not here involved of contributions by both employer and employee, is a clear indication *616 that the exclusion applies only to payments made under the plan which is exempt under
While the legislative history of
Subsection (e) of section 24 of the bill is a committee amendment to
S. Rept. No. 1983, 85th Cong., 2d Sess. (1958),
With respect to the general annuity provisions,
The*188 statutory language, reading as follows: "Notwithstanding the provisions of this section or any provision of law, there shall be excluded from the gross estate the value of an annuity or other payment receivable by any beneficiary (other than the executor)" -- is quite clear in its meaning. Congress, in adopting this language, specifically extended exclusion coverage to amounts that might be includable under provisions of law other than 2039(a), thereby stating, in effect, that 2039(c) is not to be construed narrowly so as to limit its application to items that fall exclusively within the provisions of
In this setting we cannot construe the plain statutory words "Notwithstanding the provisions of this section or any provision of law," in such a way as to subvert their meaning.
In view of the foregoing discussion, we believe the correct rule to be that the value of annuities or other payments receivable by a beneficiary under a qualified trust or plan which falls within subsection (c) of
[Fn. omitted.]
In light of the view we *189 took of
We should, of *190 course, construe
This reasoning of the Second Circuit, that
While the factual situation involved in the
Based on our interpretation of
Tannenwald,
Hall,
The income and the estate tax benefits provided by Congress with respect to qualified employee benefit plans are both generous and unique in the Code. For income tax purposes, amounts contributed by an employer under such a plan are normally both deductible to the employer (section 404) and excludable from the employee's income (section 402). Such amounts accumulate tax free until distribution (section 501(a)), and upon ultimate distribution are accorded still further special tax advantages (section 402). Finally, payments receivable by a beneficiary under such a plan are excludable from a decedent's gross estate under
*196 Within this overall framework, the purpose of
Respondent, paying little heed to the statutory purpose, points out that in 1957 the Pension Trust Committee had the right, instead of furnishing decedent with the annuity contracts in question at the time of decedent's termination from employment, to cash in the contracts and pay cash to decedent. Respondent observes further that after decedent had received the contracts, he could have surrendered them for cash, even though he did not. Respondent contends that the existence of such unexercised rights removes the contracts in question from the protection of
In my view, this contention should be firmly rejected as inconsistent not only with the statutory language but with the*197 beneficent purpose of the tax law providing special tax benefits for qualified plans, and as effectively negating
*199 In the light of industry practice, little would be left of
Here decedent has an annuity which is not only guaranteed in advance, but was probably purchased at a lower rate than he could obtain it because of absence of commission or expense.
Nor is respondent's reliance on
The reason I agree with the majority conclusion is that on the facts of the present case decedent did not follow the qualified plan, which called for pay status to commence at age 65. Once decedent strayed materially from the plan's payment provisions, he converted the payment from one "under" a qualified employee trust into one under his own personal plan, which he implicitly arranged with the insurance company to substitute for the qualified plan. Having taken himself out from the scope of
The pension trust agreement in this case provided that whether or not a participant remained in the company's employ after age 65, the annuity*203 policy held for the participant's benefit would go into pay status on the anniversary date of the contract nearest to the participant's 65th birthday. Decedent was a participant in this plan. Decedent terminated his employment in 1957 when he was 61 years old, at which time the Pension Trust Committee ordered the trustee to deliver to decedent the two annuity contracts which are now under consideration, both of which matured shortly before decedent's 65th birthday. The contracts provided that if decedent were living on the maturity date (June 30, 1961, the anniversary date closest to his 65th birthday) a life annuity with 120 months certain would commence, unless he elected to receive a refund annuity or a joint and survivor annuity. Such commencement, however, was apparently not in practice automatic, but required some affirmative request by decedent, since decedent reached the maturity date and payments did not then commence. The contracts also provided that decedent had the option to begin the annuity earlier or later than age 65, but not later than the anniversary date of the contract nearest his 70th birthday. Decedent died about 2 1/2 months after the anniversary date *204 nearest his 70th birthday, having selected no annuity plan and without receiving any annuity payments under either of the two contracts. The issuing insurance company apparently acquiesced in decedent's inaction, treating it in effect as a request to leave the cash surrender value at interest well beyond the time (age 65) when the qualified plan contemplated that the annuity would go into pay status.
In my view, the contracts in issue ceased to answer the description of
1. All references are to the Internal Revenue Code of 1954, as amended, unless otherwise indicated.↩
2.
(c) Exemption of Annuities Under Certain Trusts and Plans. -- Notwithstanding the provisions of this section or of any provision of law, there shall be excluded from the gross estate the value of an annuity or other payment receivable by any beneficiary (other than the executor) under -- (1) an employees' trust (or under a contract purchased by an employees' trust) forming a part of a pension, stock bonus, or profit-sharing plan which, at the time of the decedent's separation from employment (whether by death or otherwise), or at the time of termination of the plan if earlier, met the requirements of (2) a retirement annuity contract purchased by an employer (and not by an employees' trust) pursuant to a plan which, at the time of decedent's separation from employment (by death or otherwise), or at the time of termination of the plan if earlier, was a plan described in section 403(a); (3) a retirement annuity contract purchased for an employee by an employer which is an organization referred to in section 503(b) (1), (2), or (3), and which is exempt from tax under section 501(a); or (4) chapter 73 of title 10 of the United States Code.
1. The Senate Finance Committee has stated in connection with the current legislation in the Congress on Private Pension Plan Reform (Report of the Committee on Finance, United States Senate, Together with Additional and Supplemental Views on S. 1179, S. Rept. No. 93-383, 93d Cong., 1st Sess., pp. 107-108 (1973)):
"Concern has been expressed in the case of the administration of employee benefit plans (and also tax exempt organizations) as to whether the Internal Revenue Service with its primary concern with the collection of revenues is giving sufficient consideration to the purposes for which these organizations are exempt. Many believe that the present organization of the Service causes it to subordinate concern for the protection of the interests of plan participants (or the educational, charitable, etc., purposes for which the exemptions are provided).
"On the other hand, the enormous growth in retirement plans during the last third of a century has proceeded largely under the tax regulations of the Internal Revenue Service. Moreover, clearly the greatest single protection for rank and file employees during this time has been the Internal Revenue Service's administration of the provision denying any special tax treatment for contributions or benefits discriminating in favor of employees who are officers, shareholders, supervisors, or highly compensated employees. The thrust of this provision is to require broader substantial participation in the plans than would be provided but for the Service's administration of the statute.
"At the same time, it must be recognized that the natural tendency is for the Service to emphasize those areas that produce revenue rather than those areas primarily concerned with maintaining the integrity and carrying out the purposes of exemption provisions. Similar concern has been expressed in the past over the Service's administration of the provisions of the tax law relating to exempt organizations.
"The committee believes that in the employee benefit plan and tax exempt organization area it should be easier to emphasize the basic objectives involved if the activities relating to these plans and exempt organizations were more closely coordinated, if the activities in these areas relating to auditing, rulings, etc. whether in the field or in the national office are brought together and if the top direction for these activities also has specialized in them. For the reasons outlined, the bill establishes a separate office in the Internal Revenue Service, headed by an Assistant Commissioner for Employee Plans and Exempt Organizations to deal primarily with plans that are (or claim to be) qualified under
2. The standard retirement annuity policy provides for a cash surrender value. The annuities in issue are standard contracts. The usual form of retirement annuity is as follows:
Level premiums are deposited with the insurance company during the deferral period and accumulate at interest. In the event of the death of the annuitant prior to age 65 (maturity date of the contract), the contract provides for return of the cash surrender value. During the deferral period the owner of the contract (be that the trustee or annuitant) may withdraw the cash value at any time and terminate the contract. On the other hand, if the contract lapses, the cash value is automatically applied to produce a paid-up deferred annuity in a reduced amount. However, the owner (trustee or annuitant) of the lapsed policy may surrender the paid-up annuity at any time.
Premiums for the contract are quoted on the basis that the accumulated sum at maturity will be applied under a life annuity with 120 monthly installments guaranteed. At maturity, however, the annuitant may elect at his option another form of annuity (e.g., joint and survivor), the actual monthly installments being appropriately adjusted. In addition, at maturity, the owner (trustee or annuitant) has the further option of taking the accumulated sum in cash instead of in the form of an annuity.
The usual form of retirement annuity permits the annuitant to have the income commenced at an earlier or later date than the one originally specified in the contract with an appropriate adjustment in the amount of income. Thus, the accumulated cash value is applied to the selected age as a single premium to purchase an immediate life annuity with the amount of the annuity income depending upon the amount of the cash value, the age selected, and the form of life annuity chosen.
See Huebner & Black, Life Insurance 123-124 (8th ed. 1972); MacLean, Life Insurance 61-63 (9th ed. 1962); Magee, Life Insurance 74-76 (3d ed. 1958).↩
3. The contract contemplates that prior to maturity the annuitant will select the option he prefers (i.e., life annuity with 120 months certain, a refund annuity, or joint and survivor annuity) and instruct the insurance company to commence payment.↩