The Exclusion Ratio for a Purchased Annuity Is the Cost

question 58

True/False

The exclusion ratio for a purchased annuity is the cost of the annuity divided by the interest rate.

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Definitions:

Authorized Shares

The total number of shares that a corporation is legally allowed to issue, as specified in its articles of incorporation.

Subscribed

Term used to describe the commitment by investors or customers to purchase or subscribe to a company's stocks, services, or publications.

Preemptive Right

The right of existing shareholders to purchase additional shares of new stock before it is offered to the public to maintain their proportional ownership in the company.

Corporate Policies

Guidelines and principles that dictate various aspects of a company’s operations, including ethical conduct, employee relations, and compliance with laws.