CPCU 556 exam questions

• 1. Economic Growth
• 2. The tax structure
• 3. Two income families are becoming the norm

• 1. on a strictly discretionary basis
• 2. Under an arrangement whereby the advisors basically makes investment decisions but consults with clients regarding rationale
• 3. Under an arrangement by which the advisor and the client consult extensively before investment decisions are made but client reserves the right to decide

• 1. Reduction in individual income tax rates
• 2. Marriage penalty relief
• 3. Greatly improved education planning opportunities
• 4. Substantially increased contribution and deduction limits for qualified retirment plans, IRA's, and other plans
• 5. The ability of all 401k participants to make all or part of their elective contributions in after-tax Roth contributions if the plan allows
• 6. Increases in the federal estate tax and generation skipping transfer tax applicable exclusion amount
• 7. Repeal of the step up in income tax basis at death rule, and adoption of a modified carry over basis at death rule

Whether to rely on insurance for insurance protection alone, or whether to rely on insurance as an investment vehicle

death benefits minus cash value

It enables the policy owner to move the policy cash value among the sub-accounts inside the policy without any current income tax liability. This allows the policy owner to make changes in his or her asset allocation strategy within the policy without adverse tax consequences