Ray has a limited-payment life policy with a face value of $250,000. The cash surrender value (CSV), of the policy is $62,100, and Ray has paid $49,700 in premiums. The NCPI is $28,900. What is the adjusted cost basis (ACB) of the policy?

Question 1 options:

	$187,900
	$138,200
	$109,300
	$20,800

Question 2 (1 point)

Fatima has owned her participating whole life policy since 1978. The face value of the policy is $50,000. Currently the CSV is $29,000. She has paid $32,000 in premiums. What is the policy's ACB?

Question 2 options:

	$32,000
	$3,000
	$29,000
	$21,000

Question 3 (1 point)

Kelly has a universal life policy with a face value of $500,000. The cash surrender value of the policy is $185,200 and Kelly has paid $131,000 in premiums. The NCPI is $77,000. If Kelly surrenders the policy, what will be the amount of her policy gain?

Question 3 options:

	$185,200
	$131,200
	$54,200
	$369,000

Question 4 (1 point)

Kelly has a universal life policy with a face value of $500,000. The cash surrender value of the policy is $185,200 and Kelly has paid $131,000 in premiums. The NCPI is $77,000. How much could Kelly borrow from the policy?

Question 4 options:

	$166,680
	$131,000
	$117,900
	$69,300

Question 5 (1 point)

Ray has a limited-payment life policy with a face value of $250,000. The cash surrender value (CSV), of the policy is $62,100, and Ray has paid $49,700 in premiums. The NCPI is $28,900. If Ray took a $50,000 loan, how much of the loan must he declare as income when he files his income tax (the loan was not repaid in the year it was taken)?

Question 5 options:

	$300
	$29,200
	$12,100
	$50,000