When an Annuitant Receives Liquidation Payments, Part of the Payment

question 30

Multiple Choice

When an annuitant receives liquidation payments, part of the payment is a return of principal and is thus exempt from Federal Income tax. The tax-exempt portion of the payment is calculated using the:

• A) exclusion ratio
• B) refund ratio
• C) vested ratio
• D) combined ratio

---

Definitions:

Problem-focused Coping

A strategy that involves directly addressing a stressor or problem to effectively manage or solve it.

Ineffective Coping

Ineffective Coping is a psychological term describing an individual's inadequate ability to manage stress or adversity, often leading to negative emotional or physical outcomes.

Care Plan

A formal plan developed by healthcare providers and the patient to outline a course of treatment and interventions for specific health care needs or conditions.

Coping Ability

An individual's capability to manage and adapt to stress or adversity.