With regard to the taxation of life insurance policies, which of the following statements is CORRECT?

A) As long as a whole life policy is not surrendered, the cash value accumulates tax free.

B) The premiums that Acme Manufacturing pays for its business life insurance policies (key purpose insurance, entity cross-purchase plans) are tax deductible.

C) Amy owns a participating life insurance policy on her own life. She can deduct the premium payments, but she will be taxed on any dividends the policy may pay.

D) Terry owns a 10-year-old whole life insurance policy which she surrenders for cash. She will be taxed on the full amount she receives, since the policy did not mature.

Answer: A) As long as a whole life policy is not surrendered, the cash value accumulates tax free.

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Which of the following terms best describe the coverage provided by term policies, as compared to any other form of protection?
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What is the other term for the cash payment settlement option?
The pro rata liability clause is designed to protect the principle of
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What does the word "level" in Level Term describe?
A beneficiary change can occur
No existing agent's license will be revoked until
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A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n)
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Under an extended term nonforfeiture option, the policy cash value is converted to
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How many pair of glasses in a 12-month period will a vision expense insurance plan cover?
The voluntary relinquishment of a legal right is called
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Who is responsible for assembling the policy forms for insureds?
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What is the other term for the cash payment settlement option?
Which of the following is NOT true regarding the accumulation period of an annuity?
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