Question 9013 of 303 · California Life-Only Agent Exam
Interest earned on a policy loan from a whole life policy is
Exactly one answer is correct.
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Correct answer to question 9013
- C: interest the owner owes to the insurer
Explanation
Policy loans accrue interest charged to the owner. Loans are not taxed as income unless the policy is a MEC or lapses with a gain.
More questions: Taxation of Life Insurance and Annuities
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