Multiple choice technology testing

1035 is … type of replacement

  1. Internal

  2. External

  3. Internal and External replacement

  4. 1035 replacement
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Section 1035 of the Internal Revenue Code governs tax-free exchanges of life insurance policies. Replacement can be internal (within same company) or external (between companies), so 1035 applies to both.

AI explanation

This appears to be insurance/annuity domain terminology regarding IRC Section 1035 exchanges, which allow tax-free replacement of a life insurance or annuity contract with another. Such exchanges can occur either within the same carrier (internal replacement) or between different carriers (external replacement) — 1035 itself doesn't restrict which type applies, so it's classified as covering both internal and external replacement scenarios. This is specialized insurance-compliance training content rather than general knowledge, so it's hard to verify independently with full certainty.

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