An insured decided to surrender his Whole Life insurance policy which he purchased 30 years ago. The insured was paying annual premiums of $500 while the policy was in force (which added up t0 $15,000). When he surrendered the policy, the cash surrender value was $18,000. What part of the surrender value would be income taxable?

A. $1,000

B. $3,000

C. $15,000

D. $18,000

Answer: B. $3,000

Accident and Health Insurance

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An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?

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