Reference no: EM131931901
1. $100,000 death benefit is paid to the beneficiary, age 50, under pure life income (i.e. life annuity) option and the payment is $4000 per year. Based on IRS mortality table, the life expectance of 50 old is 35 years, then how much of each the payment is taxable income of the beneficiary?
A- $4000
B- $500
c- $ 2857
d- $1143
2. Which of the following living proceeds from life and health insurance is free from income tax? (1) Accelerated death benefits; (2) surrender value ; (3) Benefits from health insurance;(4) Benefits from LTC insurance that lower than the per diem limitation.
A- (3) AND (4) ONLY
B- (1) and (3) only
c- (1), (3), and (4)
d- (1), (2), (3), and (4)
3. Rebecca’s $100,000 ordinary life policy, issued 20 years ago, carries an annual premium of $ 1,300 and has a cash surrender value of $30,000. The sum of all dividends over the 20 year period is $10,000. If she surrendered the policy, how much the amount subject to ordinary income tax?
A- $23,000
B- $26,000
c- $16,000
d- $14,000
4. Under which of the following circumstance the death benefit is not included in the insured’s gross estate?
a- Mom purchased life insurance on dad, and named the kids as beneficiaries
b- Mom purchased life insurance on herself and named the kids as beneficiaries
c- Mom purchased life insurance on herself and didn’t name anyone as beneficiaries
d- If all of the above should be included in the insured’s gross estate, please choose D.
5. Domestic insurers are those that are incorporated under the laws of USA and the foreign insurers are those that are incorporated under the laws of foreign countries.
A- True
B- False
6. The following ratios provide measurement of insurer’s surplus adequatcy, except:
A- Surplus adequacy ratio
B- Rate of Surplus formation
C- Surplus relief ratio
D- De- liability- to Surplus
|
Describe methodology you would apply to identify root causes
: If you were a Continuous Improvement Manager in your organization, describe some of the methodology you would apply to identify root causes.
|
|
What type of dividend policy
: A retired investor who depends on his/her dividend income will tend to favor what type of dividend policy? What is this effect called?
|
|
Difference between waccs using market value and book value
: ABC Trucking's balance sheet shows a total of noncallable $35 million long-term debt with a coupon rate of 4.70% and a yield to maturity of 6.20%.
|
|
How much gross fixed assets did company buy
: ABC started the year with 3,200,000 of net fixed assets and ended the year with 2,812,000 of net fixed assets. Depreciation expenses during the year were.
|
|
Death benefit is not included in the insured gross estate
: Under which of the following circumstance the death benefit is not included in the insured’s gross estate?
|
|
Describing the sarbanes-oxley act
: According to the IRS Web site, corporate tax fraud is defined as "violations of the Internal Revenue Code (IRC) and related statutes committed by large.
|
|
What is the value of equity
: For ABX Inc., the risk premium is 6% and the risk free rate is 3%. The firm's corporate income tax rate is 30% and the debt-to-equity ratios is 40%.
|
|
What is the new divisor for the price-weighted index
: Able, Baker, and Charlie are the only three stocks in an index. The stocks sell for $93, $312, and $78, respectively. If Baker undergoes a 2-for-1 stock split.
|
|
What is the equivalent uniform amount of the losses
: According to the Government Accountability Office (GAO), if the U.S.Postal Service does not change its business model, it will lose $48million next month.
|