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CFP - Finley > CFP - 2.1 Insurance > Flashcards

CFP - 2.1 Insurance Flashcards

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1
Q

Collateral Assignement

A

Policy owner assigns all or a portion of the death benefit to a creditor as security for the loan

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2
Q

Basis of contract equals

A

Premiums - dividends - outstanding loans or withdrawals-cost of insurance

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3
Q

What type of whole life policy provides constant protection, but premiums are higher and only paid for a specific term?

A

Limited-pay life

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4
Q

What type of hazard is high blood pressure?

A

Physical hazard

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5
Q

A type of whole life insurance where the cash values are based on the insurer’s current mortality, investment, and expense experience. An amassment account is credited with a current interest rate, which changes over time.

A

Current assumption whole life (CAWL)

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6
Q

Can you use a premium bonus on a new policy to cover surrender charges on an old policy?

A

NO NO NO

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7
Q

Are pure endowment policies sold in the US?

A

No

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8
Q

How are cash values treated for tax basis?

A

FIFO

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9
Q

Can MECs be converted?

A

No, once an MEC, always an MEC

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10
Q

Workers’ Compensation:

Do workers injured on the job need to prove employer’s negligence?

A

No, strict liability

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11
Q

When are Deferred Income Annuity payout times selected?

A

At the time of initial premium payments

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12
Q

Endorsements are AKA

A

Riders

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13
Q

Universal Life Option B (or 2) pays what type of death benefit?

A

Increasing, face plus cash value

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14
Q

Particular risks affect…

A

Individuals or small groups of people

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15
Q

How are MEC withdrawals treated for tax basis?

A

LIFO

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16
Q

Are interest-only payments on death benefits tax free?

A

No, taxed as ordinary income

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17
Q

What insurance types should be emphasized during the distribution phase? (2)

A

Health & Long Term Care

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18
Q

Hazard

A

A condition that increases the probability that a loss occurs

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19
Q

Vicarious liability can apply to… (3)

A
  1. Parents on behalf of children
  2. Employers OBO employees
  3. Principals OBO agents
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20
Q

How much of a surrendered cash value is taxable?

A

Excess cash received over the net paid premiums. Dividends usually just reduce basis via return of premium.

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21
Q

Accidental Death Rider:

Death must occur within _____ days of an accident.

A

90

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22
Q

Absolute Assignment

A

Policy owner assigns all rights in the policy to someone else (including access to the cash value)

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23
Q

A liability that may be imposed without proof of negligence or bad intent is known as _______.

A

Strict Liability

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24
Q

Universal Life Insurance premiums are fixed or flexible?

A

Flexible

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25
Q

Which life insurance options DO have cash values?

A

Whole, Universal

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26
Q

Risk of superannuation

A

Risk of choosing to take a lump sum or a lifetime stream of annuity payments

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27
Q

How are life policy surrenders taxed?

A

Taxable gain is cash surrender value minus investment in contract

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28
Q

What is an insurance policy’s basis?

A

Premiums paid minus distributions

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29
Q

The type of authority that the insured is led to believe the agent has is known as ______.

A

Apparent authority

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30
Q

If the insurance company is making the offer, what 4 conditions must occur for the contract to come into existence?
(P P G M)

A

Policy delivery
Payment of premium
applicant remained in Good health
no Medical treatment

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31
Q

What type of hazard is the chance of loss from dishonesty?

A

Moral hazard

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32
Q

Are speculative risks insurable?

A

No

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33
Q

What type of hazard is the location of a house?

A

Physical hazard

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34
Q

Are variable life investment gains tax deferred?

A

Yes

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35
Q

Static risks are…(2 things)

A

Regularly occurring
&
Insurable

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36
Q

How much does the accidental death rider usually pay out?

A

Twice the policy’s face amount

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37
Q

Guaranteed Insurability Rider

A

Allows policy owner to purchase additional life insurance at specified intervals (usually 3 years)

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38
Q

What is the exclusion ratio?

A

The amount of life insurance proceeds in the annuity payment that is a return of basis

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39
Q

Type of contract where only one party promises to perform

A

Unilateral

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40
Q

When an injured party’s own negligence contributes to his injuries, this is known as _______.

A

Contributory negligence - claimant usually recovers nothing

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41
Q

Are life insurance premiums deductible?

A

No

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42
Q

When are policy dividends taxed?

A

Once the amount received in dividends exceeds the policy’s basis

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43
Q

Grace Period

A

30 - 31 days from the due date to pay the premium

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44
Q

Disability Premium Waiver Rider exceptions

A

self-inflicted disabilities, war, violation of law

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45
Q

Last Clear Chance Rule

A

A claimant can still recover even in contributory negligence if the defendant had a last clear chance to avoid the accident but failed to do so

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46
Q

The failure to act in a way that a reasonably prudent person would have acted in those circumstances is known as ______ .

A

Negligence

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47
Q

Four elements of an insurable risk

A
  1. Large and similar sample of individuals to make losses predictable
  2. Loss must be measurable and definite
  3. Loss must be accidental
  4. Loss cannot be catastrophic to society (must be able to be spread)
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48
Q

Are pure risks insurable?

A

Yes

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49
Q

What is indemnity?

A

Recovery of up to the actual amount of damage

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50
Q

A fan chooses to sit behind first base at a baseball game and gets hit by a foul. This is known as ______.

A

Assumption of risk

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51
Q

The stated amount of money the insured is required to pay on a loss before the insurer will make any payments is the ________ .

A

Deductible

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52
Q

Can employers deduct premiums for group term life or for employee covered policies?

A

Yes

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53
Q

Product Liability:

If someone is injured by a defective product, do they need to prove the manufacturer was negligent?

A

No, strict liability

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54
Q

The likelihood that people with the highest risk of loss are also the most likely to purchase insurance is known as _____ .

A

Adverse selection

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55
Q

A flood is an example of a ______ .

A

Peril

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56
Q

What is the Law of Large Numbers?

A

The larger the number of members in the group, the greater the probability that actual loss experience will equal the expected loss experience

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57
Q

Double Indemnity

A

Twice the policy’s face amount, usually applies to the accidental death rider

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58
Q

Res ispa Loquitur

A

The thing speaks for itself. Incident wouldn’t have happened without negligence and burden of proof shifts to defendant.

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59
Q

Does the capital retention method consider inflation?

A

No

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60
Q

Investment in contract equals:

A

Premiums - dividends - outstanding loans or withdrawals-cost of insurance

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61
Q

What is the only type of insurance that can be transferred?

A

Life

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62
Q

Insurance contracts are what types of contracts?

A U C U A

A 
Adhesion
Utmost Good Faith
Conditional
Unilateral
Aleatory
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63
Q

Where is the whole life cash value invested?

A

Insurance company’s general account

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64
Q

What insurance types should be emphasized during the accumulation phase? (2)

A

Life & Disability, especially if there are dependents

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65
Q

Compensation for measurable loss is known as ______.

A

Special Damages

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66
Q

The life insurance applicant is making the offer to the insurance company if…

A

The application is accompanied by the first premium (consideration)

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67
Q

Amounts assessed to the negligent party as punishment are known as _______.

A

Punitive Damages

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68
Q

Collateral Source Rule

A

Damages assessed against a negligent party should not be reduced simply because the injured party has other sources of recovery available

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69
Q

Can the insured modify alter or negotiate an insurance contract?

A

No, contract of adhesion

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70
Q

Riders are AKA

A

Endorsements

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71
Q

How is cash value taxed if the insurer dies?

A

It escapes taxation

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72
Q

Automatic Premium Loan Provision (APL)

A

Premium can be charged against cash value if it is not paid by due date. Considered a loan and is charged interest.

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73
Q

Net Cost Method

A

(Face value + total premiums - total dividends - future cash value)

Divided by # of years, divided by $1,000

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74
Q

Should unemployed spouses be covered by life insurance?

A

Yes

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75
Q

How do regular endowment policies pay?

A

Death benefit during endowment period, annuity after endowment period

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76
Q

Credit Life Policy

A

Insures lender and borrower from financial loss if the borrower dies before completing payment.

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77
Q

Authority that the agent is not expressly given, but that an agent in a similar position would normally possess is known as ______.

A

Implied authority

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78
Q

What method of insurance programming calculates the amount of insurance needed by using interest only to furnish the continued support of the family?

A

Capital retention method

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79
Q

What type of whole life policy begins with lower premiums that increase and level off after 5 - 10 years?

A

Graded premium whole life

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80
Q

Section 1035 exchanges say that no gain is recognized if an annuity is exchanged for what?

A

Another annuity

A qualified long-term care policy

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81
Q

What type of hazard is carelessness?

A

Morale hazard

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82
Q

(Life insurance policies) How is interest on reinvested dividends taxed?

A

Ordinary income in the year earned

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83
Q

Burden of proof rests with which party?

A

Injured

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84
Q

Use the surrender cost index to measure the cost of insurance for the following policy:

Face value: $10,000
Annual Premium: $100
Annual Dividend: $26.67
Inflated at 6%
Cash value at 30 years: $4,000

Not done yet

A

PMT = 100
n = 30
I/Y = 6%
FV =

$2.71

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85
Q

Are life insurance premiums that are considered alimony payments taxable to payee?

A

Yes

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86
Q

The insurance company is making the offer to the life insurance applicant if…

A

The premium is not received at the time of the application.

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87
Q

Accidental Death Rider exceptions (S D W)

A

Suicide, death from disease, acts of war

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88
Q

(Life insurance policies) How are dividends exceeding premiums taxed?

A

Ordinary income

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89
Q

In a divorce settlement, does transfer of policy from one spouse to another cause a taxable event?

A

No

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90
Q

Which Universal Life Option costs more?

A

B or 2

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91
Q

Dividends can be…

C P I D T

A

paid in CASH
used to reduce PREMIUM
left with insurance company to earn INTEREST
used to purchase additional DEATH BENEFIT
used to purchase one-year TERM insurance

92
Q

Dynamic risks are the result of…

A

The economy changing

93
Q

Are death benefits paid to beneficiaries included in gross income?

A

No

94
Q

Can an agent bind the principal in contract with a third party?

A

Yes

95
Q

Conditional Receipt

A

Insured is deemed insurable and coverage begins

96
Q

Risks that involve only the chance of loss or no loss are known as _______.

A

Pure risks

97
Q

Modified Endowment Contract policies charge premiums during the first __#___ years

A

7

98
Q

Fundamental risks affect…

A

A large group of people

99
Q

How do you calculate the exclusion ratio?

A

Tax Basis / Total Benefit

100
Q

Written authority given by the principal to the agent is known as _______.

A

Express authority

101
Q

What is the maximum QLAC (qualified longevity annuity contract) amount for a 401(k) or IRA?

A

$125,000 or 25% of account balance, whatever is less

102
Q

Suicide Clause

A

If insured commits suicide within 2 years, premiums without interest are refunded, but no death benefit is paid

103
Q

Which approach consumes part of the interest, but no death benefit?

Annuity Approach
Purchasing Power Preservation Model

A

Purchasing Power Preservation Model

104
Q

Cost of Living Rider

A

offers additional insurance as inflation protection, usually indexed to CPI

105
Q

Section 1035 exchanges say that no gain is recognized if a life policy is exchanged for what?

A

Another life policy
An endowment policy
An annuity
A qualified long-term care policy

106
Q

Is income earned but not withdrawn taxable to the policy owner?

A

No, accumulates tax free until withdrawal

107
Q

Twisting (insurance)

A

Misrepresentations to induce policy owner to change to a new policy with a different company

108
Q

Section 1035 exchanges say that no gain is recognized if an endowment policy is exchanged for what?

A

Another endowment policy
An annuity
A qualified long-term care policy

109
Q

What type of contract is accepted in exact terms?

A

Contract of adhesion

110
Q

What is the face amount of a Credit Life Policy?

A

Balance of the loan

111
Q

Use the net cost method to compare the following policies

1:
30 years
$100,000 face value
$1,000 annual premium
$250 annual dividends
Cash value at 30 years = $40,000
2:
30 years
$150,000 face value
$1,200 annual premium
$100 annual dividends
Cash value at 30 years = $60,000
A

1: $2.75/$1,000
2: $4.1/$1,000

112
Q

Maximum age of commencement of income for Deferred Income Annuities

A

85

113
Q

Written additions to an insurance contract are known as _______ .

A

Riders or Endorsements

114
Q

Type of contract where the outcome is determined by chance

A

Aleatory

115
Q

Subrogation

A

If the insurer pays the insured for a loss caused by a third party, the insured is required to assign his right to recover from the third party to the insurer

116
Q

Are life insurance premiums that are considered alimony payments tax deductible to payor?

A

Yes

117
Q

Estoppel

A

Prevents denying a fact that was previously admitted

118
Q

Universal Life cash value accumulation is determined by…

A

Interest rates

119
Q

Which life insurance options do NOT have cash values?

A

Term, variable, universal variable

120
Q

If the act itself constitutes negligence, this is known as ______.

A

Negligence per se

121
Q

What type of hazard is indifference to loss?

A

Morale hazard

122
Q

Risks that involve the chance of both loss or gain are known as _______.

A

Speculative risks

123
Q

Peril

A

Cause of financial loss

124
Q

Life insurance gain at surrender equals:

A

Cash surrender value - investment in contract

125
Q

Do variable universal policies have a guaranteed death benefit?

A

No, can decline to 0

126
Q

What type of whole life policy begins with lower premiums for 3 - 5 years, then increase to an amount slightly more than whole life premium at the age of inception?

A

Modified premium whole life

127
Q

What method of insurance programming calculates the remaining work-life expectancy calculates the present value?

A

Human life value method

128
Q

Compensation for intangible loss (pain and suffering) is known as _______.

A

General Damages

129
Q

What happens if the insured dies during the grace period?

A

Beneficiary gets death benefit minus the amount of premium due

130
Q

When are MEC withdrawals subject to penalty and how much?

A

10%, before 59 1/2

131
Q

Are dynamic risks generally insurable?

A

No

132
Q

_______ are perils that are not covered in a policy.

A

Exclusions

133
Q

Spendthrift Clause

A

Protects the proceeds from the beneficiary’s creditors

134
Q

Universal Life Option A (or 1) pays what type of death benefit?

A

Level, the face amount of the policy

135
Q

Which approach consumes both interest and death benefit?

Annuity Approach
Purchasing Power Preservation Model

A

Annuity approach

136
Q

Being legally liable for someone else’s tort is known as _______.

A

Vicarious liability

137
Q

Extraordinarily dangerous activities are covered under….

A

Strict liability

138
Q

5 elements of an insurance contract (OC OCF)

A
  1. Offer & acceptance
  2. Consideration
  3. Legal object (must be legal business)
  4. Legal capacity (must be age of majority and competent, if not, the insured can void, not insurer)
  5. Legal form (must be in an approved form ie written)
139
Q

What licenses are required to sell variable life insurance?

A

Insurance AND securities

140
Q

Nonforfeiture Provision

A

An insured party can receive full or partial benefits or a partial refund of premiums after a lapse due to non-payment

141
Q

Section 1035 exchanges say that no gain is recognized if a qualified long-term care policy is exchanged for what?

A

Another qualified long-term care policy

142
Q

Do life insurance death benefits generally avoid probate?

A

Yes, if there is a named beneficiary

143
Q

Life insurance death benefits go through probate if the decedent gifted the policy within _____ years of the decedent’s death.

A

3

144
Q

Life insurance death benefits go through probate if the proceeds are payable to:

1.
2.
3.

A

Estate
Executor of the estate
Creditors of the estate

145
Q

Life insurance death benefits go through probate if the decedent retains…

A

Incidents of ownership

146
Q

What are the 3 incidents of ownership for a life insurance policy?

A

Right to…

Assign policy
Change beneficiary
Change policy provisions

147
Q

How are life insurance proceeds payable to the spouse taxed?

A

Included in gross estate, but deducted from gross estate with the unlimited marital deduction - no estate tax

148
Q

Sales proceeds for a viatical settlement are generally more than x and less than y

A

More than cash value

Less than death benefit

149
Q

Viatical settlement sales proceeds are not subject to income tax if the insured is expected to die within _____ months

A

24 - certified by a doctor

150
Q

Viatical settlement proceeds are not subject to income tax if the insured is chronically ill and the proceeds are used for _______.

A

Long term care

151
Q

How do you calculate the tax due for the purchaser of a viatical settlement when the insured dies?

A

Death proceeds - purchase price of policy - premiums paid

152
Q

Annuities purchased before DD/MM/YY are subject to _____ method of taxation.

A

August 14, 1982

FIFO

153
Q

Annuities purchased after DD/MM/YY are subject to _____ method of taxation.

A

August 14, 1982

LIFO

154
Q

Are there any penalties on annuity distributions?

A

Yes, 10% before 59 1/2, unless the contract was purchased before August 14, 1982

155
Q

What is the exclusion ratio of a fixed annuity?

A

Investment in contract / (Annual Payments x life expectancy)

156
Q

How many fixed annuity payments use the exclusion ratio?

A

Up until life expectancy is passed, then fully taxable

157
Q

Exclusion ratio applies for the entire payment period for fixed annuity payments that began before what date?

A

December 31, 1986

158
Q

What happens to unused basis if the annuity dies before life expectancy?

A

Deductible on final income tax return as a misc itemized deduction not subject to the 2% of AGI floor

159
Q

What is the exclusion ratio of a variable annuity?

A

Investment in the contract / annuitant’s life expectancy

160
Q

Bill purchased a variable annuity at the age of 63. The total cost was $15,000.0 The annuity will pay annual payments of $800. His life expectancy is 21.6 years. What is the exclusion ratio and what amount is included in gross income?

A

Exclusion ratio = 15,000/21.6 = 694.44

$800 - 694.44 = 105.56 included in gross income

161
Q

Can you use 10 year forward averaging on annuities?

A

No

162
Q

How are annuity earnings taxed for individuals?

A

Earnings accrue tax deferred until they are withdrawn

163
Q

How are annuity earnings taxed for corporations?

A

Earnings are treated as ordinary income (or loss) for that given year.

164
Q

Group term life premiums up to the first $XXXXX of coverage paid by the employer is tax exempt to the employee or retiree covered by plan.

A

$50,000

165
Q

Employee age 56 is provided with $200,000 of group term life coverage.

IRS table cost per $1,000 for his age is $0.43 per month. He pays $350 annually towards the cost of the coverage. How much will be included in his gross income?

A

$200,000 - $50,000 = $150,000

150 x 0.43 x 12 = $774

$774 - 350 = $424

166
Q

Non-discriminatory group life and health plans must cover:

X % or more of all employees

AND

X % or more of non-key employees

A

70%

85%

167
Q

How are health insurance premiums taxed to the employee?

A

Tax exempt

168
Q

How are health insurance premiums taxed to the employer?

A

Tax deductible

169
Q

What is split-dollar life insurance?

A

Employer and employee share the costs and benefits of life insurance policy.

170
Q

What does the employer pay in a split-dollar life insurance policy?

A

The premium equal to the current year’s increase in the cash surrender value of the policy

171
Q

What does the employer get if an employee with a split-dollar policy dies?

A

Premium outlay is recovered from policy proceeds and the remaining amount goes to the employee’s beneficiary

172
Q

Are split-dollar premiums tax deductible to the employer?

A

No

173
Q

Can split-dollar policies be used with officers or directors?

A

No, Sarbanes-Oxley

174
Q

In the endorsement method of the split-dollar policy, who owns the policy?

A

Employer

175
Q

In the collateral assignment method of the split-dollar policy, who owns the policy?

A

Employee

176
Q

How are premium payments treated in the endorsement method of the split-dollar policy?

A

Treated as a benefit received by the employee

177
Q

How are premium payments treated in the collateral assignment method of the split-dollar policy?

A

Treated as a loan to the employee

178
Q

Death benefits are included in the gross estate if the insured/owner transferred or assigned the policy within ____ years prior to death.

A

3

179
Q

Are key employee life insurance premiums deductible?

A

No

180
Q

Are death benefits on key employee life insurance policies tax free to the business?

A

Yes

181
Q

Executive bonus life insurance plans are known as Section ___ Plans

A

162

182
Q

Can Section 162 Plans be discriminatory?

A

Yes

183
Q

How are executive bonuses taxed for Section 162 plans?

A

Ordinary income

184
Q

Are Section 162 bonuses deductible to the employer?

A

Yes

185
Q

Can IRAs hold life insurance?

A

No

186
Q

Can life insurance be provided through a qualified plan?

A

Yes, but must meet the incidental death benefit requirement

187
Q

What two tests make up the incidental death benefit requirement?

A

25% test: No more than 25% of the employer’s contributions can be used to purchase life insurance (50% for whole life)

100:1 ratio rule: A death benefit cannot exceed 100 times the expected monthly benefit to the employee

188
Q

How are life insurance policies in qualified plans taxed at death?

A

included in gross estate

189
Q

Are non-qualified deferred compensation plans subject to ERISA?

A

No

190
Q

How do non-qualified deferred compensation plans benefit key employees?

A

Benefits and contributions can exceed qualified plan limits

191
Q

Are non-qualified deferred compensation plan contributions tax deductible to the employer?

A

Yes, but not until the funds are constructively received

192
Q

Non-qualified deferred compensation plans:

Are there limits to the amount of benefit given to any one employee?

A

No

193
Q

Non-qualified deferred compensation plans:

What are the nondiscrimination requirements?

A

None

194
Q

Non-qualified deferred compensation plans:

How are benefits taxed to the employee?

A

Tax deferred

195
Q

Non-qualified deferred compensation plans:

What is a common way employers use?

A

Golden handcuffs

196
Q

Non-qualified deferred compensation plans:

What types of corporations cannot take full advantage?

A

S corps and partnerships

197
Q

Non-qualified deferred compensation plans:

What is constructive receipt?

A

Occurs if executive has access to the funds or if the funds are securely set aside

198
Q

Non-qualified deferred compensation plans:

How are constructive receipt funds taxed?

A

NOT TAX DEFERRED - taxed as soon as they become constructively received, defeats the whole purpose!

199
Q

Non-qualified deferred compensation plans:

When is the deferred compensation not treated as constructively received?

A

If there is substantial risk of forfeiture

200
Q

What 2 things qualify as substantial risk of forfeiture?

A
  1. Unsecured promise to pay

2. Rabbi trust

201
Q

Funded Non-qualified deferred compensation plans:

When is the executive taxed?

A

At the time of contribution or when he becomes vested

202
Q

Non-qualified deferred compensation plans:

How does the salary continuation approach work?

A

Provides a specified deferred amount payable in the future without a reduction of current salary

203
Q

Non-qualified deferred compensation plans:

How does the salary reduction design work?

A

Part of the executive’s current pay is deferred

204
Q

What is a Rabbi trust?

A

Trust set up to fund a deferred compensation plan, funds are subject to employer’s general creditors

205
Q

Who has claim to assets in a Rabbi trust?

A

Executives in the Non-qualified deferred compensation plan

AND

Employer’s general creditors

206
Q

When are assets in a Rabbi trust taxed to the executive?

A

When received by executive, assets in a Rabbi trust have substantial risk of forfeiture

207
Q

How can an executive minimize risk of not receiving the deferred compensation?

A

Purchase a surety bond

208
Q

Does purchasing a surety bond on deferred compensation result in vesting and immediate taxation to the executive?

A

No

209
Q

Who pays the premiums on surety bonds on deferred compensation?

A

The executive, no reimbursement from employer

210
Q

What is a secular trust?

A

Irrevocable trust funded by the employer for the exclusive benefit of the employee to receive deferred compensation

211
Q

Can employer’s creditors claim funds in a secular trust?

A

No

212
Q

What form of Non-qualified deferred compensation funding does NOT have substantial risk of forfeiture?

A

Secular Trust

213
Q

When are secular trust funds taxed to the executive?

A

When the employer places the funds in trust, or when the executive is vested

214
Q

When can the employer deduct contributions to a secular trust?

A

When the payment is made to the trust

215
Q

What does SERP stand for?

A

Supplemental Executive Retirement Plan

216
Q

What type of deferred compensation plan is a SERP?

A

Salary continuation plan

217
Q

Non-qualified deferred compensation plans:

Is disclosure in financial statements required?

A

Yes, sometimes

218
Q

What aspects of ERISA are SERPs subject to?

A

reporting and disclosure, NOT subject to nondiscrimination testing

219
Q

What does an Excess Benefit Plan pay to executives?

A

Pays the difference between the amounts payable under the qualified plan and the amount they would have received if annual additions limits did not exist

220
Q

Long Term Care policies must have:

An expected loss ratio of _____%

A

60%

221
Q

Long Term Care policies must have:

A _____ day free look period

A

30

222
Q

Long Term Care policies must have:

If the policy is a replacement policy, does the insurer have to wive the time period for pre-existing conditions?

A

Yes

223
Q

Long Term Care policies have to be ______ and ______

A

Guaranteed renewable and noncancellable

224
Q

Are life insurance policy loans subject to taxation if they are more than the basis?

A

No, unless they are MEC’s

225
Q

What is an MEC?

A

Life insurance policy issued after 6/21/1988 that fails the 7-pay test

226
Q

What is the 7-pay test?

A

Fails if premiums paid during the first 7 years of the contract exceed the total of the net level premiums that would have been paid if the policy provided for paid up benefits after the seventh year

CFP - Finley (11 decks)

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