Question 2019 of 287 · Texas Life, Accident and Health Agent Exam
A policyowner who chooses to leave dividends with the insurer to earn interest has selected
Exactly one answer is correct.
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Correct answer to question 2019
- C: the accumulation at interest option
Explanation
Under accumulation at interest, the dividends stay on deposit and earn interest. The interest is generally taxable in the year earned, but the dividends themselves are treated as a return of premium.
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