All of the following statements about the taxation of life insurance are true EXCEPT: a) dividends received on life insurance policies are income-tax free b) the proceeds of a life insurance policy are not subject to estate taxes when the insured policyowner dies c) if a policy is surrendered for its cash value, only the amount in excess of the net premiums paid is subject to income taxation d) death benefits paid to the beneficiary as a lump sum are free from income taxation Which of the following statements about accelerated death benefits riders is (are) true? I. After a partial payment is made to the insured, there is a reduction in the face amount of insurance and cash value. II. Accelerated death benefits are used when the insured no longer wants or needs life insurance protection. a) I only Ob) ll only c) both I and II d) neither I nor