Which of the Following Types of Exchanges of Insurance Contracts

question 12

Multiple Choice

Which of the following types of exchanges of insurance contracts qualify for nonrecognition treatment under § 1035?

• A)Exchange of life insurance contracts.
• B)Exchange of a life insurance contract for an endowment or annuity contract.
• C)Exchange of an endowment contract for an annuity contract.
• D)Only a.and b.
• E)a.,b.,and c.

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Definitions:

Acquired Needs

Psychological or emotional needs that develop over time based on one's experiences and environment, such as the need for achievement or affiliation.

Hunger

A physical sensation and a basic biological drive for food intake, resulting from the body's need for nutritional sustenance.

Satisfied

A feeling of pleasure or contentment resulting from achieving what one wants or needs.

Satiety

The feeling of fullness or satisfaction that results from the consumption of food, leading to the cessation of eating.