Which one of the following statements identifies a purpose or characteristic of a survivorship life insurance policy?

A$)$

The premium will be more than the combined premiums on separate policies for each of the insured parties.

B$)$

When the insured parties are a husband and wife, a purpose can be to allow the first spouse to die to receive the death proceeds free of transfer tax.

C$)$

The underwriting will concentrate most on the insured party that is likely to die first.

D$)$

A purpose is to provide estate liquidity at the death of the survivor of the insured parties.

Which one of the following is the most appropriate form of business transfer technique for Erik to use to achieve his objectives?

A$)$

A preferred stock recapitalization in which Erik retains stock that pays a fixed cumulative dividend and that has a fixed liquidation value and voting rights, with annual exclusion gifts of nonvoting common stock being made to his son

B$)$

A preferred stock recapitalization in which Erik retains stock that pays a noncumulative dividend and that has a fixed liquidation value, with annual exclusion gifts of nonvoting stock being made to his son

C$)$

Selling the business to the son on an installment sale basis, with the payments secured by the business assets

D$)$

A cross$-$purchase buy$-$sell agreement with his son that is funded with life insurance, with the purchase price being equal to the business's value at the time of sale or death