Which of the following statements best describes the purpose of key-person or key-executive disability insurance?
A) It indemnifies the business to cover expenses and losses incurred when a key person is disabled.
B) It indemnifies the business to cover losses when an owner or partner dies.
C) It provides health benefits to a group of employees.
D) It provides tax-favored disability income benefits to a key person should she become disabled.
Ans: A) It indemnifies the business to cover expenses and losses incurred when a key person is disabled.
You might also like to view...
Fear of the unknown, threats to social relationships, and habit are all
A) causes of structural inertia. B) pressures on organizations to change. C) indications of economic insecurity. D) individual barriers to change.
In a statement of cash flows, the term cash includes:
A. Only money on deposit in bank accounts. B. Only bank accounts and cash on hand. C. Bank accounts, cash on hand, and cash equivalents. D. Bank accounts, cash on hand, cash equivalents, and marketable securities classified as current assets.