A corporation has key-person life insurance on its president. If the president dies, which of the following statements would be CORRECT?
A) The policy premiums will be returned to the beneficiary.
B) The company may use the death benefit proceeds to search for and retain a new president.
C) The death benefit proceeds will be distributed equally to the executives.
D) The proceeds will be paid to the president's beneficiary."
Ans: B) The company may use the death benefit proceeds to search for and retain a new president.
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