0 [{"id":410153,"quiz_id":"20766","answer_id":null,"answerType_id":"0","created_at":"2018-03-17 04:05:45","updated_at":"2018-03-17 04:05:53","questionName":"A life policy death benefit increase linked directly to the consumer price index will not be treated as a material change under the MEC rules. [2]","questionTimeSeconds":"0","questionTimeMinutes":"2","questionImagePath":null,"position":1,"explanation":null,"question_score_id":null,"lang":null,"questionAudioPath":null},{"id":410152,"quiz_id":"20766","answer_id":null,"answerType_id":"0","created_at":"2018-03-17 04:05:45","updated_at":"2018-03-17 04:05:53","questionName":"The 10 percent penalty will apply to the total amount of any withdrawal from a MEC. [1]","questionTimeSeconds":"0","questionTimeMinutes":"2","questionImagePath":null,"position":0,"explanation":"The 10 percent penalty will apply only to that portion of a withdrawal from a MEC that is subject to the federal income tax; that is, the portion attributable to the gain in the policy on a LIFO basis. In addition, the penalty tax is generally applicable to gains withdrawn from a MEC before the policyowner reaches age 59\u00bd. Moreover, it does not apply to payments attributable to disability or annuitized payments.","question_score_id":null,"lang":null,"questionAudioPath":null},{"id":410154,"quiz_id":"20766","answer_id":null,"answerType_id":"0","created_at":"2018-03-17 04:05:45","updated_at":"2018-03-17 04:05:53","questionName":"All MECs issued by the same insurer to a policyowner during any calendar year will be treated as one policy for purposes of the MEC tax rules. [2]","questionTimeSeconds":"0","questionTimeMinutes":"2","questionImagePath":null,"position":2,"explanation":null,"question_score_id":null,"lang":null,"questionAudioPath":null}]

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A life policy death benefit increase linked directly to the consumer price index will not be treated as a material change under the MEC rules. [2]

Select the correct answer(s).  

(0/0)

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T_TRUE

F_FALSE

none

The 10 percent penalty will apply to the total amount of any withdrawal from a MEC. [1]

Select the correct answer(s).  

(0/0)

Explanation

The 10 percent penalty will apply only to that portion of a withdrawal from a MEC that is subject to the federal income tax; that is, the portion attributable to the gain in the policy on a LIFO basis. In addition, the penalty tax is generally applicable to gains withdrawn from a MEC before the policyowner reaches age 59½. Moreover, it does not apply to payments attributable to disability or annuitized payments.

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F_FALSE

T_TRUE

none

All MECs issued by the same insurer to a policyowner during any calendar year will be treated as one policy for purposes of the MEC tax rules. [2]

Select the correct answer(s).  

(0/0)

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T_TRUE

F_FALSE