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Question 1 of 2
1. Question
Arthur’s deferred annuity contract contains a qualified long-term insurance rider. Last year the insurer made a charge against the cash value equal to $3,000 to pay the rider premium. If the deferred annuity contract had a gain of $2,000 at the time of the charge, how much income must Arthur recognize?
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Question 2 of 2
2. Question
The association that Carol, a California resident, belongs to sponsors a group long-term care insurance policy issued outside California in which she is interested in participating. What is the minimum number of persons the association must have at the outset before it may offer the coverage in California?
