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.
e) Key Person coverage may be funded by any type of life insurance.

Answer: b) The plan is funded by permanent insurance only.

Life Insurance

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