1. When can the actual cost of any given life insurance policy most accurately be ascertained? 2. Which of the following methods for treating substandard life insurance applicants is used when the extra mortality is thought to increase with age? a. lien b. flat extra premium c. special dividend class d. extra percentage table 3. Concerning the proceeds received from a life insurance policy while the insured is still living, policy dividends are treated as to the extent total dividends exceed total premiums paid. 4. T/F When a policy is surrendered for cash, the taxable amount is the policyowner's current basis in the policy. 5. In which of the following situations would life insurance policy proceeds be included in an insured's gross estate for federal tax purposes? 1. The policy beneficiary is the insured's estate II. The insured died 25 months after transferring all incidents of ownership in the policy to his sister A. I only B. Il only C. Both I and II D. Neither I nor II 6. Characteristics of viatical settlements include all of the following EXCEPT A. Financial relief for the client during the insured's final illness B. A cash settlement determined by the insurance company C. Licensing of viatical settlement brokers and providers in certain states D. Lack of SEC regulation 1. When can the actual cost of any given life insurance policy most accurately be ascertained? 2. Which of the following methods for treating substandard life insurance applicants is used when the extra mortality is thought to increase with age? a. lien b. flat extra premium c. special dividend class d. extra percentage table 3. Concerning the proceeds received from a life insurance policy while the insured is still living, policy dividends are treated as to the extent total dividends exceed total premiums paid. 4. T/F When a policy is surrendered for cash, the taxable amount is the policyowner's current basis in the policy. 5. In which of the following situations would life insurance policy proceeds be included in an insured's gross estate for federal tax purposes? 1. The policy beneficiary is the insured's estate II. The insured died 25 months after transferring all incidents of ownership in the policy to his sister A. I only B. Il only C. Both I and II D. Neither I nor II 6. Characteristics of viatical settlements include all of the following EXCEPT A. Financial relief for the client during the insured's final illness B. A cash settlement determined by the insurance company C. Licensing of viatical settlement brokers and providers in certain states D. Lack of SEC regulation