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Please answer with reason for all why the option is correct and why the other options are incorrect Please answer correct otherwise skip it

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Policyholder dividends from a whole life insurance policy are generally tax exempt. In which of the following situations would the policyholder dividend be tax exempt?

A) The policyholder receives dividends that are less than the investment in the contract.

B) The policyholder receives dividends greater than the investment in the contract.

C) The dividend is from a MEC and is received in cash.

D) The policyholder dividends exceed premiums paid.

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