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Insurance Licensing Virginia Life, Annuities, and Health Insurance Examination Series 11-01 Virginia-Life-Annuities-and-Health-Insurance Question # 78 Topic 8 Discussion

Insurance Licensing Virginia Life, Annuities, and Health Insurance Examination Series 11-01 Virginia-Life-Annuities-and-Health-Insurance Question # 78 Topic 8 Discussion

Virginia-Life-Annuities-and-Health-Insurance Exam Topic 8 Question 78 Discussion:
Question #: 78
Topic #: 8

All of the following statements about employer-paid group disability income insurance are true EXCEPT:


A.

The monthly indemnity paid to an employee who becomes disabled is always tax-free.


B.

Employer-paid premiums are not taxed to the employee.


C.

The employer-paid premium is tax-deductible for the employer.


D.

The employer-paid premium is treated as an ordinary and necessary business expense.


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