Life Insurance Part III

Primary purpose of a Section 303 redemption is
A.   liquidation of an estate's assets to provide income for survivors
B.   to provide liquidity to pay estate taxes and administration and funeral costs
C.   to provide income for a business owner at retirement.
D.   to enable a business owner to redeem shares in payment of debts on a tax advantagedbasis

Ac company may write insurance in excess of its retention limits
A.   if it is a fraternal benefit society
B.   when its annual premium volume has exceeded the amount specified 
C. by insuring the excess with other companies through a reinsurance agreement or treaty
D.   under no circumstances

An application for group coverage is signed by the 
A.   individual insureds, who then receive individual policies
B. employer, who then receives and retains a master policy
C.   individual insured, but a master policy is issued to employer
D.   employer, who then receives individual policies to distribute to each individual insured

The most common eligibility factors for noncontributory group life insurance are
A.   salary level and length of service
B.   length of service and job classificatin
C.   salary level and age
D.   age and length of service

A retention limit is the
A.   maximum amount of insurance a company may write in any one state
B.   minimum amount for which any one policy may be written
C. maximum amount of risk a company will assume on any one policy
D.   minimum amount of annual premium on a company must write to be admitted to a state

A split-dollar plan
A.   will provide additional compensation to an employee at some future date, usually retirement
B.   divides the cost of purchasing a business interest
C.   divides the cost of additional insurance for an employee between that employee and the company
D.   insures the lives of valuable employees in order to compensation the company event of their unexpected death

A gift by a single individual of premium payments for an insurance policy that belongs to someone else may be made without any gift tax liability so long as those premium payments do not exceed
A.   There is no limit on gifts of insurance premiums
B.   $20,000/yr
C.   $2000/yr
D.   $10,000/yr