Life and Health
Select the statement that best describes a Multiple Employer Trust (M.E.T.) A. A group of small businesses that band together in order to qualify for group insurance benefits B. An organization unifying employers to cooperatively cut medical costs through preventative medicine C. A type of re-insurance company backing insurance issued to business D. None of the above
A. A group of small businesses that band together in order to qualify for group insurance benefits
Travel Accident Insurance can be purchased from any of the following, EXCEPT A. A professional life agent B. A vending machine C. An insurer representaive D. A travel agent
A. A professional life agent
In order to be qualified to sell LTC insurance in the state of CA, agents must comply with all of the following EXCEPT: A. All licensees are required to pass a LTC knowledge exam every 10 years B. For licences issued after Jan 1, 1992, 8 hours of training for the first four 12-month periods from date of license issuance, then 8 hours prior to each renewal. C. Non-resident licensees file with the Insurance Commisioner and have commisioner approve education requirement D. Eight hours prior to renewal for licenses issued prior to Jan 1, 1992.
A. All licensees are required to pass a LTC knowledge exam every 10 years
A Disability Income Policy that covers injuries suffered by an insured on or off the job is called? A. An occupational policy B. A non-occupational policy C. A wraparound policy D. Twenty-four hour policy
A. An occupational policy
Which of the following is false regarding the taxation of life insurance? A. Annuity death benefits are totally exempt from taxation B. Businesses that buy group term life insurance for its employees can generally deduct the premiums because they are considered a business expense C. Individuals making premium payments on life insurance cannot deduct those premiums D. none of the above are false.
A. Annuity death benefits are totally exempt from taxation
Specified Disease insurance provides which of the following? A. Coverage for one stipulated disease B. Incidental coverage C. Experimental procedures D. All outpatient procedures
A. Coverage for one stipulated disease
The Family medical Leave Act covers all of the following EXCEPT: A. Expenses incurred due to traveling with a partner that has been transferred abroad B. The adoption of a child C. Caring for a disabled parent d. Personal medical needs
A. Expenses incurred due to traveling with a partner that has been transferred abroad
Charles Harris has earned a Chartered Life Underwriter designation. From the selections below choose the one that the California Insurance code would find acceptable when publishing his name: A. Harris Insurance Services B. Charles Harris, CLU and Company C. Charles Harris, Insurance Company D. All the above are acceptable
A. Harris Insurance Services
What information can a party to a contract of insurance be allowed NOT to communicate according to CA law? A. Info which the other party already knows B. Info not specifically asked by an agent and company, even if it's considered relevant. C. Info which is material to the contract D. info which cannot be proven but is material
A. Info which the other party already knows
Which settlement option allows only the death benefit earnings to be paid to the beneficiary? A. Interest option B. Cash option C. Fixed period option D. Fixed amount option
A. Interest option
What happens to a license after the death of a natural person who holds a valid insurance license? A. It always terminates B. It may be transferred to another person C. The license becomes inactive until the expiration date D. The license must be returned to the Commisioner to cancel the license.
A. It always terminates
Which of the following is available to all at no charge at age 65? A. Medicare Part A B. Medicare Part B C. Supplementary Medicare D. Social Security
A. Medicare Part A
"The inability of an insured to perform one or more of the regular duties of his or her own occupation". This is a description of a A. Partial disability B. Residual disability C. Recurrent disability D. None of the above
A. Partial disability
In Disability Income Insurance, several riders are available for insureds to purchase. The "return of premium" rider: A. Provides for the return of a percentage of premiums paid at periodic intervals, provided the insured remains disabled . B. Allows the insured to return the policy within usually 6 months and receive a full refund of the premiums paid C. Waives a premium retroactively to the beginning of a disability D. Takes the premiums used to pay for the policy and redirects them to pay for medical expenses
A. Provides for the return of a percentage of premiums paid at periodic intervals, provided the insured remains disabled .
All of the following are classed by the ADA as life activities, EXCEPT A. Running B. Walking C. Seeing D. Hearing
A. Running
Which of the following covers the costs associated with one stipulated illness? A. Specified disease B. Critical Illness C. Medical expense D. Disability income
A. Specified disease
Which of the following is true regarding the government's social insurance program known as Social Security? A. The majority of workers in the U.S. must pay into the program B. The contributions paid in closely match the benefits received C. Participants sign a contractual agreement with the insurer D. Both A and B above are true
A. The majority of workers in the U.S. must pay into the program
An insured bought an annuity ten years ago. He will retire in five years. To determine the value of the annuity, the number of accumulation units is multiplied by the value of the separate account. What type of annuity was purchased? A. Variable annuity B. Fixed premium annuity C. Tax sheltered annuity D. Single payment annuity
A. Variable annuity
Which of the following statements concerning the usual coordination of benefits provision are correct? A. When the plans both have the provision, coverage as an employee is primary to coverage paid to dependents B. Coverage under COBRA is primary to coverage paid to the employee C. Medicare coverage is always primary to group coverage D. Coverage under any plan with the provision is primary to coverage under any plan without the provision
A. When the plans both have the provision, coverage as an employee is primary to coverage paid to dependents
all of the following are penalties for use of an illegal policy illustration, EXCEPT A. application denied for up to 240 months b. license suspension c. license revokation d. fine
A. application denied for up to 240 months
Which of the following applies to the insurance program known as Social Security? A. contributions are compulsory for most workers B. benefits are based upon a contract with the insured C. benefits are paid to each individual matching their contributions D. all insured workers begin to receive benefits at age 65
A. contributions are compulsory for most workers
An insurer organized under the laws of the state of CA is a A. domestic insurer B. foreign insurer C. non-alien insurer D. non-admitted insurer
A. domestic insurer
When is insurable interest required to exist with a life insurance policy? A. At the time of death B. At the time the policy is written but not at the time of death C. At the time the policy is written and at the time of death D. At all times during the policy life
B. At the time the policy is written but not at the time of death
Which of the following does Part A of Medicare NOT provide coverage for? A. Skilled nursing care B. Doctors services C. Hospice care D. Home health care
B. Doctors services
When a family policy covers children, all of the following are true, EXCEPT: A. The coverage is term insurance for a fixed amount. B. Evidence of insurability is required if coverage for children is permanent insurance C. There is no additional charge for covering new additions to the family. D. All children living with the family are covered even if born or adopted after the policy is issued.
B. Evidence of insurability is required if coverage for children is permanent insurance
Life insurance settlement options include all of the following, EXCEPT: A. Interest option B. Extended term option C. Fixed amount option D. Fixed period option
B. Extended term option
All of the following would be considered one of the three major types of loss exposures, EXCEPT: A. Liability loss exposure B. Financial loss exposure C. Human and personnel loss exposure D. Property loss exposure
B. Financial loss exposure
Jenn has reached a time in her life where she wishes to begin receiving payments from her tax-deferred annuity. Her agent has suggested she take the money by means of the "life income with 10 years certain" option. When she does, the insurer will make payments. A. For 120 months assuming she lives that long B. For at least 120 months or the remainder of her life C. Up to the date she dies, then payments will be made to her beneficiary D. For 120 months then payments will decrease and be paid to her for life.
B. For at least 120 months or the remainder of her life
With the cost of living rider, the life insurance policy holder: A. Must increase or decrease the face value of the policy as the index increases or decreases B. Gets the automatic increase in the face value if there is an increase in the cost of living index. There is an additional premium for the additional coverage. C. Gets the automatic increase in the face value if the index goes up. There is no charge except for the flat charge for the rider. D. All of the above are false
B. Gets the automatic increase in the face value if there is an increase in the cost of living index. There is an additional premium for the additional coverage.
A health insurance contract states that if during the first 30 days after the policy's effective date, an illness occurs, there will be no benefits paid out of the policy. What is this period of time called? A. Probationary period B. Illness waiver C. Waiver period D. Benefit period
B. Illness waiver
Julie Marks is a licensed insurance sales person who represents the Gold Sovereign Insurance Company. If you were to look at the front of her office you would see a sign that reads: If Julie performs acts that are required but are not specifically named in the written contract she has with Gold Sovereign she is exercising her ____ authority A. Principal B. Implied C. Express D. All of the above
B. Implied
Which of the following recall provisions of a disability contract is likely to change the contract least and cost the most? A. Continuous indemnity contract B. Noncancellable contract C. Guaranteed renewable contract D. Expense arrangement contract.
B. Noncancellable contract
The Elimination Period in a DI policy is the equivalent of: A. The pre-existing conditions period in a medical policy B. The deductible in a medical expense policy C. The grace period D. The free look period
B. The deductible in a medical expense policy
Which of the following is NOT true regarding qualification for residual disability benefits? A. The insured must be under the orders of a physician B. The insured must qualify for Social Security disability benefits C. The insured's income must be at least 20% below their pre-disability level D. the insured must be unable to work full/part time
B. The insured must qualify for Social Security disability benefits
When a corporation uses life insurance to purchase shares through a buy-sell agreement, which is true regarding the federal income tax treatment, which is true regarding the federal income tax treatment of the transaction? A. Death benefits used to cross-purchase shares are taxable to the insured shareholder's estate if the shareholder had any incidents of ownership in the insurance B. The purchase is treated as a nonregarded loss or gain if the shares are composed of common stock C. the purchaser's total bases of shares will increase as a result of the transaction D. Premiums are deductible if the cross-purchase transfer falls under an exemption under the transfer-for-value rule.
B. The purchase is treated as a nonregarded loss or gain if the shares are composed of common stock
All of the following statements about the election of a life insurance policy's settlement options are true, EXCEPT: A. The election is made by the policy owner at the time the application is submitted B. When no settlement option is chosen, the proceeds are automatically paid to the policyholder's estate C. The policy owner may change the settlement option after it has been chosen. D. The election may be made by the beneficiary if no settlement option is in force at the time of death of the insured.
B. When no settlement option is chosen, the proceeds are automatically paid to the policyholder's estate
Twelve months ago, a man slipped and fell down a flight of stairs at work. As a result he has a paralysis which he is not expected to recover. This 46 year old person will probably be able to collect disability income benefits fr: A. Medicare B. Workers' Compensation C. Medicaid D. Social Security
B. Workers' Compensation
An organization will cease to exist as an entity eligible to hold a license for all of the following reasons, EXCEPT: A. termination of an association B. termination of a key employee C. Human and personnel loss exposure D. Property loss exposure
B. termination of a key employee
Which of the following is correct about a Third-party administrator? A)It is a person who works for a life agent and helps in the solicitation of health insurance B) It is the department of an insurer that handles the payment of claims C)It is an independent company that provides administrative services for another company's self-funded plans D. None of the above
C)It is an independent company that provides administrative services for another company's self-funded plans
A person has paid $50,000 into a fixed annuity over 20 years. When he decides to begin income payments the insurer calculates that he will receive $4000 per year for life, which means that he will receive a total of $100,000. In the first 10 years of payments how much is taxable every year? A. $0 B. $800 C. $2000 D. $4000
C. $2000
An entity that provides the administrative services for employers, such as the documentation and record keeping for group insurance needs, is called: A. A self-funded plan B. An administrative services only program C. A third party administrator D. A group sponsor
C. A third party administrator
From the following, select the type of the life insurance which could be best used to protect your customer's heirs from a mortgage obligation should your customer die: A. Level term insurance B. Increasing term C. Decreasing term D. None of the above
C. Decreasing term
From the descriptions below, identify which one is a Term Policy A. The policy contains a provision that provides nonforfeiture options. The owner pays premiums for 25 years which payments are no longer required yet coverage is still in force B. The policy states premiums are to be paid every year. At the end of 15 years the cash value represents about 25% of the total face amoutn. C. Each year the premium increases as the insured grows older. After several years the coverage and premiums end simultaneously. Cash value is not created. D. The premium increases after 5 years then remains the same until it is paid up at age 65
C. Each year the premium increases as the insured grows older. After several years the coverage and premiums end simultaneously. Cash value is not created.
Which of the following is NOT provide coverage for? A. Help protect from the possibility of a loss B. Reduce the uncertainty of financial loss C. Eliminate the risk of sickness D. Replace a large possible loss with that of a small certain loss (premium)
C. Eliminate the risk of sickness
Which of the following gives individuals the right to purchase additional life insurance regardless of their insurability? A. Incontestability B. Accelerated death benefit C. Guaranteed insurability D. Waiver of Premium
C. Guaranteed insurability
An association of industry specific employers who are joined together in order to qualify for, or gain premium advantages, in group insurance is: A. MEWA B. MEC C. MET D. MIB
C. MET
An individual license is considered terminated A. When transferred to another person B. When transferred to another licensee C. On the death of the licensee D. When transferred to ta beneficiary
C. On the death of the licensee
If the owner of a life insurance policy elects to pay an annual premium, she will A. Find her premiums the same as compared to all other payment methods B. Pay more as compared to paying premiums every six months C. Pay less as compared to paying premiums every six months D. Pay a reduced amount if she pays earlier in the year, rather than at the end of the period of coverage, as is customary
C. Pay less as compared to paying premiums every six months
An agent advertising on the internet must include all of the following in the advertisement, EXCEPT A. The agent's license number B. The agent's business address in the state C. The agent's business telephone number D. The agent's true and/or fictitious name
C. The agent's business telephone number
What does a standard coinsurance clause found in a health insurance policy require? A. Distribute coverage over two or more companies B. That one policy be the primary carrier, and the other be the secondary if there are two plans covering the same person C. The insured and insurer pay a percentage of medical expenses that are covered, in excess of the annual deductible. D. The insured pays a dollar amt for a service received
C. The insured and insurer pay a percentage of medical expenses that are covered, in excess of the annual deductible.
Which of the following categories of benefits are NOT covered in the Long term care policy ? A. home care benefits B. Custodial care benefits C. acute care coverage in a hospital D. community based care benefits
C. acute care coverage in a hospital
Which of the following documents must show the license number of an active life agent? A. Price quotes B. A magazine advertisement C. Business cards D. All of the above
D. All of the above
Which of the following is NOT a standard level of care for LTC policy? A. Intermediate care B. Custodial care C. Skilled nursing care D. Convalescent care
D. Convalescent care
According to the CA Insurance Code, a judgement against an applicant who entered a plea of "nolo contendere" is considered to be: A. Innocent by code, but guilty by law B. Innocent C. Referred to the Insurance Commisioner for opinion D. Convicted
D. Convicted
When children are covered under a Family Life insurance policy A. Only those children that are not adopted are protected under the policy after policy issue B. Those children will increase the premium C. Whole life will typically be applied for them D. Evidence of the insurability is not required if conversion is made to permanent insurance for those children
D. Evidence of the insurability is not required if conversion is made to permanent insurance for those children
If the financial loss on a certain group of people occuring over a certain period of time defines the pricing of a disability policy, it is the pricing principle known as: A. Rapidity B. Security C. Risk D. Frequency
D. Frequency
All of the following are examples of the dividend options available on a whole life insurance policy, EXCEPT A. One-year term option B. Application to reduce premium C. Paid up additions D. Life income with period certain
D. Life income with period certain
If no other selection is made, which of the following settlement options becomes the default or automatic mode of settlement for the death benefit of a life insurance policy? A. Life income with period certain B. The purchase of an annuity C. Installment payments D. Lump sum in cash
D. Lump sum in cash
Which of the following is NOT provided by Hospice Care? A. Pain relief B. Symptom management C. counseling D. Rehabilitation
D. Rehabilitation
Index-linked life insurance plans have their benefit determined by an index which provides an indication of their effects of inflation on the purchasing power of the dollar. Which index is typically used to do this? A. The Seventh District Cost of Funds Index B. Actuarial tables C. Table of Guaranteed Values D. The Consumer Price Index
D. The Consumer Price Index
All the following is required on a life insurance application, EXCEPT: A. health history B. Amt of other life insurance in force C. Age of insured D. The amt of disability income insurance in force.
D. The amt of disability income insurance in force.
All of the following are true regarding a policy owner that ceases making premium payments on a 10-day life policy and selects the extended term insurance option, EXCEPT: A. The face amount will be the same on the new extended term plan as the old 10-pay life policy B. Premium payments no longer have to be made C. The extended term policy will be in force a certain period and then expire D. The extended term policy will reflect the same cash value as the original policy
D. The extended term policy will reflect the same cash value as the original policy
Which of the following is the first step in the Medicare claims process A. The local Medicare carrier pays benefits to the patient B. The patient files a claim directly with the local Medicare carrier C. The local Medicare pays benefits to the patient D. The patient's hospital/physical files a claim with the local Medicare carrier
D. The patient's hospital/physical files a claim with the local Medicare carrier
What type of life insurance policy gives the owner the right to share in the insurer's profits in the form of a dividend? A. Whole life B. Endowment policy C. Any modified endowment contract D. participating policy
D. participating policy
A probationary Period in a group health policy is intended for people A. who decline to join the group during the eligibility period B. with other coverage after a qualifying event C. with a pre-existing condition when they joined the group D. who joined the group after the effective date
D. who joined the group after the effective date
The settling option stating that the principal will only decrease if the beneficiary makes withdrawals from it is the: A. Fixed period or fixed amount option B. Interest-only C. Life income option D. Life-only option
Interest-only option
an insurer's violation of state rules regarding the transaction of insurance can result in imprisonment for any of the following, EXCEPT a. 10-15 years b. 2 years c. 5 years d. 1 yr
a. 10-15 years
jim sells LTC coverage to the public. this means he must a. complete 8 hours in an approved LTC CE course b. complete 25 hours in an approved LTC CE course C. do nothing; LTC CE is included in life agent CE course d. do nothing, there is no CE for LTC
a. complete 8 hours in an approved LTC CE course
a failure to communicate info which a party to an insurance contract knows and should communicate is called an act of a. concealment b. intimidation c. warranty d. coercion
a. concealment
deductibles, coinsurance, and co-payments, in a health insurance policy are cost-effective choices that have the effect of a. cost sharing b. cost avoidance c. cost containment d. cost evasion
a. cost sharing
which of the following is a feature of regular IRAs? a. deductible contributions and taxable distributions b. deductible contributions and tax free distributions c. non-deductible contributions and tax free distributions d. non-deductible contributions and taxable distributions
a. deductible contributions and taxable distributions
under the Consolidated Omnibus Budget Reconciliation Act (COBRA), a qualifying event insures that an employee who is covered can: a. elect to continue coverage b. request a waiver of premium c. convert to an interim policy d. transfer coverage to another group
a. elect to continue coverage
unless it is merely a statement of an expectation or a belief, a representation as to the future is considered which of the following? a. promise b. provision c. liability d. description
a. promise
why should a contingent beneficiary be named in a life insurance policy? a. to determine who receives the policy benefits if the primary beneficiary is deceased b. to become policy owner if primary beneficiary is deceased c. allow creditors to receive policy proceeds d. to share the proceeds with the primary beneficiary
a. to determine who receives the policy benefits if the primary beneficiary is deceased
which of the following is NOT ordinary life insurance? a. a life paid up to 65 policy b. a 30 yr decreasing term policy c. a group life insurance policy d. a 20 yr endowment poicy
b. a 30 yr decreasing term policy
the amount paid for residual disability benefits in a Disability Income Policy is based on: a. an amt that will encourage the insured to return to work b. a loss of at least 20% of pre-disability income c. an amt necessary to cover the family's entire income needs d. the length of benefit period provided by the disability policy
b. a loss of at least 20% of pre-disability income
in insurance terms a representation can be considered a. an absolute fact b. an implied warranty c. an express warranty d. none of the above
b. an implied warranty
all of the following would be considered unfair trade practices, EXCEPT: a. making a statement to the public about a person in the insurance business that is untrue or misleading b. committing an act of discrimination whether it be fair or unfair c. filing with any public official a false statement of financial condition concerning an insurer d. making any statement misrepresenting terms of any policy
b. committing an act of discrimination whether it be fair or unfair
an insurance agent or broker receives a commission for arranging a premium finance agreement they must do which of the following? a. disclose to the client the amount of all commissions received b. dislcose to the client the amount of commission recieved for arranging the financing agreement c. share the commission with the client d. none of the above
b. dislcose to the client the amount of commission recieved for arranging the financing agreement
under the consolidated omnibus budget reconciliation act (COBRA), which of the following is a qualifying event? a. promotions b. divorce C. marriage d. relocation
b. divorce
Which of the following is correctly listed from lowest to highest initial premium? a. single premium, modified premium, continuous premium b. modified premium, continuous premium, single premium c. single premium, continuous premium, modified premium d. continuous premium, modified premium, single premium
b. modified premium, continuous premium, single premium
which party has its rights in a life insurance policy only after the death of the insured? a. the policyholder b. the beneficiary c. the applicant d. the insured
b. the beneficiary
all the following are true concerning the tx of income tax on life insurance, EXCEPT: a. premiums paid for individual life insurance policies are not tax deductible b. employers can deduct the cost of premiums paid to benefit employees as a business expense c. annuity DB proceeds are except for all taxation d. DB are generally exempt fr federal income taxation
c. annuity DB proceeds are except for all taxation
all of the following are valid reasons for the Insurance Commisioner to deny the applicant for an insurance license, EXCEPT: a. An applicant does not have a good business rep b. applicant isnt properly qualified to perform duties c. applicant doesnt have a CA business address d. applicant lacks integrity
c. applicant doesnt have a CA business address
senior citizens are given a 30 day right to return a life insurance policy a. at age 65 b. under individual or group plans c. at age 60 or older d. all of the above
c. at age 60 or older
which of the following is NOT an ex of cost sharing in health insurance policy a. coinsurance b. co-payment c. coordination d. deductible
c. coordination
terminally ill persons would need which of the following? a. skilled nursing care b. intermediate care c. hospice care d. acute care
c. hospice care
which of the following expenses is never covered by LTC insurance policy? a. home health care b. adult day care c. hospital acute care unit d. alzheimer's disease
c. hospital acute care unit
An insurer owned by policy holders is a. fraternal insurer b. capital stock insurer c. mutual insurer d. reciprocal exchange
c. mutual insurer
identify the penalty for each violation for a person engaging in any unfair method of competition: a. no more than $5000 per agent b. no more than $10,000 total no matter how many violations or type of violation c. no more than $5000 for each act, or no more than $10,000 for each act if the act is judged to be willful d. $5000 for each violation up to a total of $10,000
c. no more than $5000 for each act, or no more than $10,000 for each act if the act is judged to be willful
which of the following is a feature of Roth IRAs a. deductible contributions and tax free distributions b. deductible contributions and taxable distributions c. non-deductible contributions and tax free distributions d. non-deductible contributions and taxable distributions
c. non-deductible contributions and tax free distributions
which of the following is NOT a physician a. urologist b. neurology c. optometrist d. dermatologist
c. optometrist
which of the following is a correct statement about life insurance policy types? a. limited payment whole life policies stay in effect only as long as the premium is paid b. group life insurance policies are offered only to employees who provide proof of insurability c. the initial premium for term insurance is lower than the initial premium for whole life insurance d. universal life insurance has a structured premium payment schedule that must be followed for the entire contract period.
c. the initial premium for term insurance is lower than the initial premium for whole life insurance
an insurer's violation of the federal laws regarding the transaction of insurance can result in fines up to: a. $100,000 b. $20,000 c. $80,000 d. $50,000
d. $50,000
all of the following are true regarding recurrent disability benefits in a a Disability Income Policy, EXCEPT: A. The insured must have lost at least 20% of income b. there must be a period of recovery following initial disability c. the new disability must be related to the prior disability d. a new elimination period will apply
d. a new elimination period will apply
the purchase of an insurance policy may not provide one of the following for the insured. select the most complete answer. a. the replacement of a large possible loss for a small certain loss b. a reduction of uncertainty c. reduction in the worry/greater peace of mind d. elimination of the risk
d. elimination of the risk
listed below are descriptions of four types of policies. which is the term policy? a. the policy premium increases after three years and then it remains the same until the policy is paid up at age 55. b. the policy has a face amt of $100,000. the policy holder pays premiums annually. at the end of 10 years the cash value is $25,000. c. the policy premiums must be paid for 20 years. afterwards, the policy continues with no additional premiums paid. the policy has non-forfeiture values d. the policy has a face amt of $100,000. every 5 yrs the premium paid increases. after 10 yrs, the policy holder stops paying premiums and the coverage stops. the policy has no cash value.
d. the policy has a face amt of $100,000. every 5 yrs the premium paid increases. after 10 yrs, the policy holder stops paying premiums and the coverage stops. the policy has no cash value.
a person who spends $10,000 in a single premium annuity, and another $10,000 in a certificate of deposit (CD). both pay 10% interest annually. the person is in a 31% income tax bracket. for 40 years, this person does not touch his annuity, and reinvests all income from the CD at 10%. which of the following statements is true? a. the CD would be worth several hundred thousand more because there is no commission paid on a CD. b. the annuity would be worth several hundred thousand more because of the tax deferral of the earnings c. the CD would be worth several hundred thousand more because of tax deferral d. they would be worth approx the same amt after the payment of deffered income taxes
d. they would be worth approx the same amt after the payment of deferred income taxes
