Question 4016 of 303 · California Life-Only Agent Exam

Split dollar life insurance is an arrangement in which

Exactly one answer is correct.

Apremiums and benefits are shared by employer and employee
Ba policy is divided into two separate contracts of equal value
Ctwo insurers each pay half of the death benefit at the death
Dpremiums are paid once a year in two equal installments

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Correct answer to question 4016

A: premiums and benefits are shared by employer and employee

Explanation

Split dollar is a business use where the employer and employee split costs and proceeds in an agreed way.