1. 225 POINTS
    Kyle Monahan
    Independent Agent, Monahan Insurance, Orlando, FL
    The exclusion ratio usually refers to taxation of the payments or proceeds.  What they do is take what you paid in, divided by what you are paid out.  This will come up with a percentage ratio.  This ratio will be applied to the funds paid to you and that portion of the funds would be 'excluded' from taxation.  Consult with a tax professional to see how this may apply to your individual situation.
    Answered on July 25, 2014
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