What are the tax implications of benefits received under an individual medical expense policy, long-term care policy or Medicare supplement policy?

a. Benefits are not taxable.

b. Benefits are taxable.

c. Benefits are only taxed if an individual's unreimbursed medical expenses exceed 7.5% of their adjusted gross income.

d. All of the above

Answer: a. Benefits are not taxable.

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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?

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? a) $0 b) $30,000 c) $32,000 d) $40,000 Answer: B

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The voluntary relinquishment of a legal right is called
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