All of the following are true of key person insurance EXCEPT

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All of the following are true of key person insurance EXCEPT

A. The key employee is the insured.

B. The plan is funded by permanent insurance only.

C. There is no limitation on the number of key employee plans in force at any one time.

D. The employer is the owner, payor and beneficiary of the policy.

Answer: B. The plan is funded by permanent insurance only

Life Insurance

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An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?

An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay? a) $0 b) $30,000 c) $32,000 d) $40,000 Answer: B

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