Under the 'accumulation at interest' dividend option, the interest credited on the accumulated dividends is:

a.Never required to be reported to anyone
b.Always taxable as income to the policyowner
c.Always added to the death benefit free of any tax
d.Automatically refunded to the insurer each year

Giải thích

While policy dividends themselves are generally treated as a nontaxable return of premium, the interest earned when dividends are left to accumulate at interest is taxable income to the policyowner in the year it is credited. It is not exempt from reporting, is not always tax-free, and is not refunded to the insurer. This is a common exam point: the dividend is not taxed, but the interest it earns is.

Luyện miễn phí toàn bộ 716 câu hỏi — không cần đăng ký.

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Đội ngũ PrepPass · Đối chiếu với California Life & Health Insurance License Exam · Quy trình kiểm tra
Người kiểm duyệt John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — kiểm tra)
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