Harold Biggs Is Provided with $200,000 Coverage Under His Employer's

question 84

Multiple Choice

Harold Biggs is provided with $200,000 coverage under his employer's group-term life insurance plan. Which of the following statements is true?

• A) The value of $50,000 coverage is included in Harold's gross income.
• B) The value of $150,000 coverage is included in Harold's gross income.
• C) The value of $200,000 coverage is included in Harold's gross income.
• D) Harold's life insurance coverage is a nontaxable fringe benefit.

---

Definitions:

Guarantee

A legal commitment to assume responsibility for another's fulfillment of an obligation if that party fails to do so themselves.

Indemnity

A contractual obligation of one party to compensate the loss incurred by the other party due to the acts of the indemnifier or other specified events.

Requirement of Writing

The requirement of writing specifies that certain agreements or contracts must be in written form to be legally binding and enforceable.

Mental Incapacity

A condition where an individual lacks the ability to make decisions because of mental health issues or intellectual disabilities.