Statement 1: If an insured outlived his policy and received from the insurance company an amount equivalent to the total premiums paid, such amount is taxable. Statement 2: If the insured dies and the beneficiary receives payment from the insurance company, the amount received in excess of the total premiums paid shall be taxable. A. Both statements are true B. Both statements are false C. Only statement 1 is true D. Only statement 2 is true
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Statement 1: If an insured outlived his policy and received from the insurance company an amount equivalent to the total premiums paid, such amount is taxable. Statement 2: If the insured dies and the beneficiary receives payment from the insurance company, the amount received in excess of the total premiums paid shall be taxable.
A. Both statements are true
B. Both statements are false
C. Only statement 1 is true
D. Only statement 2 is true
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Solved in 2 steps
- 1. Statement 1: If the proceeds of life insurance are held by the insurer under an agreement to pay interest thereon, the interest payments shall be included in gross income. Statement 2: The value of property acquired by gift, bequest, devise or descent, including it fruits and income, shall be excluded from the gross income. a. Both statements are true b. Both statements are false c. Only statement 1 is true d. Only statement 2 is true 2. Case 1: Avy made a total of P5,000 contributions for SSS, Philhealth, Pag-ibig, and union dues. The P5,000 contributions form part of Avy's gross compensation. However, in computing her taxable compensation, such amount must be excluded. Case 2: Avy suddenly got sick and was hospitalized for 1 month. She received a certain amount of benefit from SSS. Her hospital bills were also reduced by her philhealth benefit. The amount received by Nora from SSS and the reduction in her hospital bills constitute taxable compensation to Nora. a. Both…33) When a policy matures on the death of the insured , it is called as:O C. Subrogation O D. Indemnity 4. An insured may not be compensated by the insurance company in an amount exceeding the insured's economic loss refers to O A. principle of contribution O B. principle of utmost good faith O C. principle of indemnity O D. principle of proximate cause 5. Which of the following actions showcases the principle of "uberrima fides"? *
- TRUE OR FALSE If the insured outlived the life insurance policy, the proceeds shall be taxable to the beneficiary less the total amount of premiums paid to the insurerWhen a life insurance policy lapses, it: a. benefits the insured b. benefits neither the insurer nor the insured. c. benefits the insurer d. benefits both the insurer and the insuredTrue or False 1. The proceeds of life insurance received by the heirs of the insured uponhis death is excluded in gross income.2. The amount received in excess of the premium paid in an insurance contractconstitutes an item of gross income.3. Donated income is included in the gross income of the donee.4. Compensation for injuries and sickness constitutes profit; hence, aninclusion gross income.5. It is sufficient that the employee rendered more than 10 years of servicefor his retirement benefit to be exempt.
- Q5: Research about and in your own words, describe the different EXCLUSIONS FROM GROSS INCOME: Ø Proceeds of life insurance policyØ Amount received by the insured as a return of premiumØ Gift, bequest, or descentØ Compensation for injuries or sicknessØ Income exempt under treatyØ Retirement benefits, pensions, gratuities, etc.The following are excluded from gross income, except: a. Proceeds of life insurance policy received by the beneficiary upon death of insured b. Compensation for injuries, sickness, or death c. Amount received by the insured in excess of the premiums paid d. None of the above10. Which of the following is (are) among the objectives of claim settlement? I. Personal assistance to the insured II. Verification of a covered loss III. Ensuring that the insured pays for a part of the loss A) I and II only B) II and III only C) All of the above D) None of the above
- Choose the best answer. 1.Which statement is TRUE about an insurance contract? * a.The insurer is the party that has an obligation under an insurance contract to compensate a policyholder if an insured event occurs. b.The policyholder is the party that has a right to compensation under an insurance contract if an insured event occurs. c.The insured event is an uncertain future event that is covered by an insurance contract and creates insurance risk. d.All of these statements are true about an insurance contract. 2. IFRS 17 provides that insurance contracts should * a.Comply with all existing IFRS b.Generally continue to be subject to existing accounting policies. c.Comply with the IFRS Framework document. d.Be covered by IAS 32 and IFRS 9 3.An insurance contract can contain both deposit and insurance elements. An example might be a reinsurance contract where the cedant receives a repayment of the premiums at a future date if there are no claims under the contract. Effectively this…life insurance proceeds paid to a beneficiary because of the insured's death is taxable. true or falseTrue or False? 1. An insurance contract is derecognized when it is extinguished and when it is modified where the modification meets any of the conditions for derecognition. 2. The occurence of the event must be certain at the inception of the insurance contract.