Which of the following statements concerning buy-sell agreements is true?

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Which of the following statements concerning buy-sell agreements is true?

A. Premiums paid are deductible as a business expense.

B. Benefits received are considered income taxable.

C. Buy-sell agreements pay in the event of a medical emergency.

D. Buy-sell agreements are normally funded with a life insurance policy.

Answer: D. Buy-sell agreements are normally funded with a life insurance policy.

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

In insurance,

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