The Purpose of the _____ Provision Is to Enable the Owner

question 14

Multiple Choice

The purpose of the _____ provision is to enable the owner of the policy to designate to whom the proceeds shall be paid when the insured dies.

• A)common disaster
• B)payment of benefits
• C)assignment
• D)reinstatement
• E)survivorship

---

Definitions:

Reportable Income

Income that must be declared for tax purposes, including earnings from employment, investments, and other sources.

Deferred Tax Asset

An accounting term used to describe a situation in which a company has paid more taxes to the government than it has actually owed during a given period.

Deferred Tax Liability

A tax obligation arising from temporary differences between accounting and tax treatments of certain items, to be paid in the future.

Tax Deductible

Expenses that are subtracted from gross income to reduce taxable income, leading to a decrease in the amount of taxes owed.