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All of the following statements regarding a MEC are correct EXCEPT: a. A life insurance policy that fails the 7 pay test is deemed a

All of the following statements regarding a MEC are correct EXCEPT:

a. A life insurance policy that fails the 7 pay test is deemed a MEC.

b. Withdrawals from a MEC are subject to FIFO tax treatment.

c. A 10% penalty applies to withdrawals prior to age 59.

d. The primary issue on a MEC is the taxation of withdrawals because the death benefit is generally tax free.

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