Series 6 - Investment Company And Variable Contracts Products Representative Exam
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Which of the following statements is true about 1035 exchanges?
The exchange is taxable between like contracts.
A
The exchange cannot be used for transfers from an annuity to a life insurance policy.
B
The exchange does not apply to transfers of cash values from annuity to annuity.
C
The exchange applies to immediate variable annuities only.
D
Explanations
1035 exchanges cannot be used on transfers between an annuity and a life insurance policy.