The new life insurance policy will not be a MEC if the original contract is not a MEC and any new premium is within the adjusted 7-pay limit. However, if the original policy was a MEC, the new policy will also be a MEC. Once a MEC, always a MEC. , The 7-pay test for a 1035 Exchange computes how much of the new death benefit is theoretically paid-up by the exchange proceeds. This amount is subtracted from the total death benefit to arrive at the remaining unpaid portion of the death benefit. A 7-pay test is performed on this unpaid amount of insurance to determine the amount of “new money”, or money not part of the exchange proceeds, that can be paid into the contract each year. If the calculated amount is negative, then no new money may be paid into the contract.