All of the statements regarding the taxation of insurance policies are correct, except:
a. When a new policy is bought for another person, the gift tax value is the gross premium paid by the donor.
b. When a single policy is gifted jointly to two children, the transfer qualifies for two annual exclusions.
c. When premiums are paid on behalf of a policy owner, the premium payments are gifts subject to gift taxes.
d. When a grandparent transfers a policy directly to a grandchild, the transferor can use annual exclusions to reduce any taxable gifts and GST taxes.