Which of the Following Statements Is (Are)true with Respect to the Cash

question 28

Multiple Choice

Which of the following statements is (are) true with respect to the cash (lump sum) annuity settlement option?
I.The taxable portion of the distribution is subject to federal and state income taxes.
II.The option results in adverse selection against the insurer as those in poor health are more likely to take cash than to annuitize the funds.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

Control Structure

The blocks in programming that analyze variables and choose directions in which to go based on given parameters.

Two-Way Selection

A control structure in programming that allows for two possible paths of execution based on a condition being true or false.

If Statements

Conditional statements that execute a block of code if a specified condition evaluates to true.

Relational Operator

Operators that compare two values and determine the relationship between them, such as greater than, less than, equal to, etc.