If $100,000 of life insurance proceeds were used in a settlement option, which paid $13,000 per year for ten years, which of the following would be taxable annually?

A. $3,000

B. $13,000

C. $10,000

D. $7,000

Answer: A. $3,000

Federal Tax Consideration for Life Insurance and Annuities

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Life income joint and survivor settlement option guarantees

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All of the following are considered limited lines of authority EXCEPT
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A domestic insurer issuing variable contracts must establish one or more
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Ambiguities in an insurance policy are always resolved in favor of the
In an insurance contract, the applicant's "consideration" is the
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The voluntary relinquishment of a legal right is called
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All of the following are true regarding a decreasing term policy EXCEPT
Purchasing a life insurance policy in order to avoid the forced sale of assets upon death is called
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The paid-up addition option uses the dividend
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Circulating deceptive sales material to the public is what type of Unfair Trade Practice?
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Who is responsible for assembling the policy forms for insureds?
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Circulating deceptive sales material to the public is what type of Unfair Trade Practice?
Insurance represents the process of risk
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What is the purpose of establishing the target premium for a universal life policy?
Which of the following is NOT true regarding the accumulation period of an annuity?
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