What is the purpose of key person insurance?

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What is the purpose of key person insurance?

a. to provide health insurance to the families of key employees
b. to insure retirement benefits are available to all key employees
c. to maintain an account that insures the owner of a company remains solvent
d. to lessen the risk of financial loss because of the death of a key employee

Answer: d

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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