Which of the Following Statements Is True of a Life

question 8

Multiple Choice

Which of the following statements is true of a life insurance?

• A) The insurable interest need not exist at the time of insurance.
• B) The insurable interest need not exist at the time of death or loss.
• C) The beneficiary and the insured cannot be the same person.
• D) The beneficiary and the insured must be bound by a relationship of blood.

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Definitions:

Simplified Tax Formula

A streamlined calculation to determine taxable income by subtracting allowable deductions and exemptions from gross income.

Income Tax Returns

Income Tax Returns are forms filed with a taxing authority that report income, expenses, and other pertinent tax information, used to calculate tax liability.

Private Letter Ruling

A written decision by the Internal Revenue Service in response to a taxpayer's request for clarification on a specific tax issue, applicable only to the individual or entity that requested it.

Tax Authority

Governmental agencies responsible for the enforcement of tax laws and the collection of taxes.