Which of the Following Would Result in Life Insurance Proceeds

question 93

Multiple Choice

Which of the following would result in life insurance proceeds that are taxable to the recipient?

• A)A life insurance policy transferred to a creditor in payment of a debt
• B)A life insurance policy in which the insured is the daughter of the taxpayer and the beneficiary is the taxpayer
• C)A life insurance policy transferred by a shareholder to a corporation
• D)A life insurance policy purchased by a taxpayer insuring his or her business partner
• E)A life insurance policy purchased by a corporation insuring an officer.

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Definitions:

Etiological Theory

A theory concerned with the causes or origins of specific diseases or disorders.

Biophysiological Model

An approach that explains mental and physical health disorders as a result of biological factors possibly interacting with psychological and social factors.

Psychological Model

A conceptual framework in psychology that represents and explains how psychological processes, behaviors, or phenomena occur and interact.

Psychodynamic

An approach in psychology that emphasizes the role of the unconscious mind, childhood experiences, and interpersonal relationships in shaping behavior and personalities.