Which of the Following Types of Exchanges of Insurance Contracts

question 7

Multiple Choice

Which of the following types of exchanges of insurance contracts qualify for nonrecognition treatment under § 1035?

• A) Exchange of life insurance contracts.
• B) Exchange of a life insurance contract for an endowment or annuity contract.
• C) Exchange of an endowment contract for an annuity contract.
• D) Only a. and b.
• E) a., b., and c.

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Definitions:

Optimal Arousal

A theory suggesting there is a level of arousal that is ideal for facilitating optimal performance on a task or activity.

Incentives

Rewards or stimuli that motivate individuals to perform actions or behaviors, often used to encourage desired outcomes.

Self-actualized

Being self-actualized refers to realizing and fulfilling one's potential and capabilities, as described in Maslow's hierarchy of needs.

Achievement

The act of accomplishing a task or reaching a goal, often requiring skill, effort, or courage.