ExamFX Life Chapters 4-6

All of the following statements concerning the use of life insurance as an executive bonus are correct EXCEPT

The policy is owned by the company

Which of the following statements regarding the taxation of Modified Endowment Contracts is FALSE

Withdrawals are not taxable

All of the following are examples of third-party ownership of a life insurance policy EXEPT

An insured borrows money from the bank and makes a collateral assignment of a part of the death benefit to secure the loan

Group life insurance is a single policy written to provide coverage to members of a group. Which of the following statements concerning group life is CORRECT?

100% participation of members is required in noncontributory plans

To attain currently insured status under Social Security, a worker must have earned at least how many credits during the last 13 quarters?

6 credits

If a life insurance policy develops cash value faster than a seven-pay whole life contract is is

A modified endowment contract