Question 9009 of 303 · California Life-Only Agent Exam
Policy dividends on a participating whole life policy are generally treated as
Exactly one answer is correct.
You got of questions right. Here on the question pages nobody remembers which ones you got wrong. The trainer saves your progress and asks the mistakes again until they stick.
Or free: the 10 questions most people get wrong
Show solution
Correct answer to question 9009
- C: a return of premium, not taxable until they exceed premiums paid
Explanation
Dividends are viewed as a refund of premium. Interest earned on dividends left on deposit is taxable.
More questions: Taxation of Life Insurance and Annuities
- 9010Premiums for the first $50,000 of employer-provided group term life insurance are
- 9011Contributions to a qualified retirement plan used to buy life insurance
- 9012Which tax rule applies to a withdrawal from a nonqualified annuity before age 59 and a half?
- 9013Interest earned on a policy loan from a whole life policy is
- 9014The tax treatment of death benefit proceeds paid in installments is that
- 9015When a lapsed policy with an outstanding loan is terminated, the owner may owe tax on