Which of the Following Types of Exchanges of Insurance Contracts

question 12

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:

Spreadsheet Simulation

A type of modeling that uses spreadsheet software to predict various outcomes based on different input variables, often used in finance and risk management.

Target Return

A financial goal for the return on an investment or business venture that a company or investor aims to achieve.

Target Return-on-investment Pricing

is a pricing method where prices are set to achieve a specified return on investment (ROI) for product sales or projects.

Annual Target ROI

The desired return on investment set by a business for a specific fiscal year, guiding financial and operational decisions.