Which statement describes the policy valuation for a gift or a bequest of a single-premium policy?

The value is the interpolated terminal reserve plus any unearned premiums.

The value is the unused premium amount.

The value is the premium paid minus expenses and mortality charges.

The value is the new issuance charge for a comparable contract of equal face value.

Connor had been the owner and beneficiary of a $1 million whole-life insurance policy on his sisters life. Connor gifted the policy away four years ago to his nephew but kept the right to borrow its cash value. If the policy was valued at $200,000 when Connor died, what amount attributed to the policy was included in his gross estate?

		Nothing. The gift of the policy to his nephew was not subject to the 3 year rule therefore the policy was not included in Connors estate.
		The $200,000 date of death value of the policy was included in Connors gross estate because he had been the owner but not the insured.
		The $1 million death benefit was included in Connors estate because he retained an incident of ownership in the policy at his death.
		The cash value of the policy was included in Connors gross estate. Lyle established a revocable trust six years ago and named the trust the beneficiary of his life insurance policy. Lyles wife and child are the beneficiaries of the trust. The proceeds paid to the trust at Lyles death will not be included in his gross estate. True False