HS321: Chpt 16

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0 [{"id":410138,"quiz_id":"20765","answer_id":null,"answerType_id":"0","created_at":"2018-03-17 04:01:50","updated_at":"2018-03-17 04:02:02","questionName":"A policyowner who surrenders a level-premium whole life insurance policy and elects one of the installment options will be taxed under the annuity rules. [1]","questionTimeSeconds":"0","questionTimeMinutes":"2","questionImagePath":null,"position":7,"explanation":null,"question_score_id":null,"lang":null,"questionAudioPath":null},{"id":410135,"quiz_id":"20765","answer_id":null,"answerType_id":"0","created_at":"2018-03-17 04:01:50","updated_at":"2018-03-17 04:02:02","questionName":"Certain withdrawals from universal life policies that result in a reduction in the death benefit may be taxed on a last-in, first-out (LIFO) basis. [1]","questionTimeSeconds":"0","questionTimeMinutes":"2","questionImagePath":null,"position":4,"explanation":null,"question_score_id":null,"lang":null,"questionAudioPath":null},{"id":410145,"quiz_id":"20765","answer_id":null,"answerType_id":"0","created_at":"2018-03-17 04:01:50","updated_at":"2018-03-17 04:02:02","questionName":"An individual who transfers a policy on his or her life to a qualified charity and continues to pay the premiums may deduct the amount of the premium payments each year as a charitable contribution only if the charity is the owner of the policy and has exclusive rights as owner. [3]","questionTimeSeconds":"0","questionTimeMinutes":"2","questionImagePath":null,"position":14,"explanation":null,"question_score_id":null,"lang":null,"questionAudioPath":null},{"id":410136,"quiz_id":"20765","answer_id":null,"answerType_id":"0","created_at":"2018-03-17 04:01:50","updated_at":"2018-03-17 04:02:02","questionName":"When a life insurance policy is surrendered during the period that the contract is in force, the owner will be subject to income taxation on the amount received in excess of his or her cost basis. [1]","questionTimeSeconds":"0","questionTimeMinutes":"2","questionImagePath":null,"position":5,"explanation":null,"question_score_id":null,"lang":null,"questionAudioPath":null},{"id":410137,"quiz_id":"20765","answer_id":null,"answerType_id":"0","created_at":"2018-03-17 04:01:50","updated_at":"2018-03-17 04:02:02","questionName":"The portion of each installment of life insurance living benefits received income tax free under an installment option is found by dividing the investment in the contract by the expected total return. [1]","questionTimeSeconds":"0","questionTimeMinutes":"2","questionImagePath":null,"position":6,"explanation":null,"question_score_id":null,"lang":null,"questionAudioPath":null},{"id":410133,"quiz_id":"20765","answer_id":null,"answerType_id":"0","created_at":"2018-03-17 04:01:50","updated_at":"2018-03-17 04:02:02","questionName":"A surviving spouse may exclude all interest income payable under any settlement option for a matured life insurance policy. [1]","questionTimeSeconds":"0","questionTimeMinutes":"2","questionImagePath":null,"position":2,"explanation":"If the amount is received with respect to a death occurring on or before October 22, 1986, the interest will be included in the gross income.","question_score_id":null,"lang":null,"questionAudioPath":null},{"id":410144,"quiz_id":"20765","answer_id":null,"answerType_id":"0","created_at":"2018-03-17 04:01:50","updated_at":"2018-03-17 04:02:02","questionName":"Local law generally requires an insurable interest only at the time a life insurance policy is originally purchased. [3]","questionTimeSeconds":"0","questionTimeMinutes":"2","questionImagePath":null,"position":13,"explanation":null,"question_score_id":null,"lang":null,"questionAudioPath":null},{"id":410131,"quiz_id":"20765","answer_id":null,"answerType_id":"0","created_at":"2018-03-17 04:01:50","updated_at":"2018-03-17 04:02:02","questionName":"Death benefits received under an annuity contract are tax free in the same manner as life insurance proceeds. [1]","questionTimeSeconds":"0","questionTimeMinutes":"2","questionImagePath":null,"position":0,"explanation":"Death benefits payable under an annuity contract do not qualify for the exclusion applicable to life insurance proceeds.","question_score_id":null,"lang":null,"questionAudioPath":null},{"id":410143,"quiz_id":"20765","answer_id":null,"answerType_id":"0","created_at":"2018-03-17 04:01:50","updated_at":"2018-03-17 04:02:02","questionName":"If the transfer of a life insurance policy falls within one of the enumerated exceptions to the transfer-for-value rule, the entire death proceeds will be received income tax free by the beneficiary. [3]","questionTimeSeconds":"0","questionTimeMinutes":"2","questionImagePath":null,"position":12,"explanation":null,"question_score_id":null,"lang":null,"questionAudioPath":null},{"id":410140,"quiz_id":"20765","answer_id":null,"answerType_id":"0","created_at":"2018-03-17 04:01:50","updated_at":"2018-03-17 04:02:02","questionName":"Premium payments for life insurance generally constitute personal nondeductible expenses. [2]","questionTimeSeconds":"0","questionTimeMinutes":"2","questionImagePath":null,"position":9,"explanation":null,"question_score_id":null,"lang":null,"questionAudioPath":null},{"id":410134,"quiz_id":"20765","answer_id":null,"answerType_id":"0","created_at":"2018-03-17 04:01:50","updated_at":"2018-03-17 04:02:02","questionName":"Accelerated death benefits paid under a life insurance contract to a terminally ill insured are generally excludible from gross income as amounts paid by reason of death. [1]","questionTimeSeconds":"0","questionTimeMinutes":"2","questionImagePath":null,"position":3,"explanation":null,"question_score_id":null,"lang":null,"questionAudioPath":null},{"id":410141,"quiz_id":"20765","answer_id":null,"answerType_id":"0","created_at":"2018-03-17 04:01:50","updated_at":"2018-03-17 04:02:02","questionName":"The transfer-for-value rule provides that if an insured transfers a policy on his or her life to another for valuable consideration, the transferee will receive the death proceeds free of income tax. [3]","questionTimeSeconds":"0","questionTimeMinutes":"2","questionImagePath":null,"position":10,"explanation":"The transfer-for-value rule applies to the transfer of a life insurance policy for valuable consideration. When the insured dies, the transferee will have taxable income on that portion of death proceeds in excess of the amount of consideration paid on the transfer, plus the total net premiums subsequently paid by the transferee.","question_score_id":null,"lang":null,"questionAudioPath":null},{"id":410139,"quiz_id":"20765","answer_id":null,"answerType_id":"0","created_at":"2018-03-17 04:01:50","updated_at":"2018-03-17 04:02:02","questionName":"When the primary beneficiary dies before receiving all installments under a fixed-period or fixed-amount option, the contingent beneficiary will be taxed on installment payments based on his or her life expectancy. [1]","questionTimeSeconds":"0","questionTimeMinutes":"2","questionImagePath":null,"position":8,"explanation":"The contingent beneficiary will be taxed in the same manner as the primary beneficiary. The contingent beneficiary may exclude the same portion of each installment from his or her gross income as the primary beneficiary was entitled to exclude.","question_score_id":null,"lang":null,"questionAudioPath":null},{"id":410142,"quiz_id":"20765","answer_id":null,"answerType_id":"0","created_at":"2018-03-17 04:01:50","updated_at":"2018-03-17 04:02:02","questionName":"One exception to the transfer-for-value rule is a transfer from the insured to another shareholder of a corporation in which the insured is a shareholder or officer. [3]","questionTimeSeconds":"0","questionTimeMinutes":"2","questionImagePath":null,"position":11,"explanation":"A transfer to another shareholder is not an exception to the transfer-for-value rule","question_score_id":null,"lang":null,"questionAudioPath":null},{"id":410132,"quiz_id":"20765","answer_id":null,"answerType_id":"0","created_at":"2018-03-17 04:01:50","updated_at":"2018-03-17 04:02:02","questionName":"Life insurance death benefits are generally excluded from the gross income of an individual beneficiary but are taxable income to a trust. [1]","questionTimeSeconds":"0","questionTimeMinutes":"2","questionImagePath":null,"position":1,"explanation":"Lump-sum proceeds payable by reason of the insured\u2019s death are generally excluded from the gross income of individuals, trusts, and estates.","question_score_id":null,"lang":null,"questionAudioPath":null}]
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A policyowner who surrenders a level-premium whole life insurance policy and elects one of the installment options will be taxed under the annuity rules. [1]

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