Which of the Following Statements Is Incorrect

question 113

Multiple Choice

Which of the following statements is incorrect?

• A)Annuity payments may be for a specified period of time or for the life of the contract holder.
• B)An annuity is a series of payments under a contract.
• C)Annuity payments are fixed in amount.
• D)The proportional amount of an annuity payment that is attributable to the cost of the contract is tax-free.

---

Definitions:

Incidental Beneficiary

A person who indirectly benefits from the fulfillment of a contract or agreement but has no legal right to enforce the agreement.

Statute of Frauds

A rule of law mandating specific agreements must be documented with the signatures of those participating to be valid and binding.

Oral Evidence

Testimony given by a witness or party during a trial based on what the witness has heard or personally experienced.

Statute of Frauds

A legal principle requiring certain types of contracts to be written and signed to be enforceable.