Question 7009 of 303 · California Life-Only Agent Exam

A 1035 exchange is permitted when a policy owner

Exactly one answer is correct.

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Correct answer to question 7009

  • A: exchanges a life insurance policy for an annuity

Explanation

IRC 1035 allows tax-free exchanges of life for life, life for annuity, and annuity for annuity, but not annuity for life.

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