Exceptions based on insured’s status
Any amount received by reason of the death of an insured who, with respect to an applicable policyholder—
(i)#
was an employee at any time during the 12-month period before the insured’s death, or
(ii)#
is, at the time the contract is issued—
(I) a director,
(II) a highly compensated employee within the meaning of section 414(q) (without regard to paragraph (1)(B)(ii) thereof), or
(III) a highly compensated individual within the meaning of section 105(h)(5), except that “35 percent” shall be substituted for “25 percent” in subparagraph (C) thereof.
(ii)(I)#
a director,
(ii)(II)#
a highly compensated employee within the meaning of section 414(q) (without regard to paragraph (1)(B)(ii) thereof), or
(ii)(III)#
a highly compensated individual within the meaning of section 105(h)(5), except that “35 percent” shall be substituted for “25 percent” in subparagraph (C) thereof.