When an Insured Dies with an Incident of Ownership in a Life

question 41

Multiple Choice

When an insured dies with an incident of ownership in a life insurance contract:

• A) the face amount is included in the gross estate
• B) the face amount is not taxed at all due to a loophole in estate tax laws
• C) only the cash value at death is included in the estate
• D) only is taxed due to the spouse's assumed half ownership

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Definitions:

Balanced Scorecard

A balanced set of measures to show contribution to organizational performance.

Activity-Based Measures

Metrics used to assess the efficiency and effectiveness of specific activities within processes or projects.

Benchmarking

The process of comparing one's business processes and performance metrics to industry bests or best practices from other companies.

Subjective Review

A method of evaluation based on personal judgments, preferences, or opinions, rather than objective measures or criteria.