Ohio Life Insurance License practice exam

What part of the Internal Revenue Code allows an owner of a life insurance policy or annuity to exchange or replace their current contract with another contract without creating adverse tax consequences? a)Section 1035 Policy Exchange b)Modified Endowment Exchange c)401(k) Plan) d)Section 457 Deferred Compensation Plan Correct Answers a) Section 1035 Policy Exchange If an immediate annuity is purchased with the face amount at death or with the cash value at surrender, this would be considered a a)Settlement option. b)Nontaxable exchange c)Nonforfeiture option d)Rollover. Correct Answers a) settlement option Which of the following is TRUE about credit life insurance? a)Creditor is the policyowner. b)Debtor is the annuitant. c)Creditor is the insured. d)Debtor is the policy beneficiary. Correct Answers a) Creditor is the policyowner Which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance? a)Undercutting