Which of the Following Statements Is False Concerning the Taxation

question 1

Multiple Choice

Which of the following statements is false concerning the taxation of life insurance?

• A) Beneficiaries receive death benefits free from any federal taxation.
• B) The value of the life insurance death benefit is always included in the insured's estate.
• C) If a non-insured/owner dies, the value included in the decedent's estate is approximately the cash value of the insurance contract.
• D) Interest earned on settlement proceeds is taxable.

---

Definitions:

Anti-Spam Legislation

Laws and regulations designed to prevent unwanted email communication by setting standards and penalties for violations.

Commercial Activity

Refers to any type of business operation or venture that involves the exchange of goods or services for profit.

PIPEDA

PIPEDA stands for the Personal Information Protection and Electronic Documents Act, which is Canadian legislation governing the use of personal information in the private sector.

Protection of Personal Information

Legal and regulatory measures designed to safeguard individuals' personal data from unauthorized access, use, or disclosure.