Sajji has an accidental death and dismemberment policy through her company. What is the tax treatment on the expenses if her employer pays 100% of the premiums?

A) Her employer may deduct the premiums and receive corporate benefits tax-free.

B) She receives benefits tax-free and is taxed on the premium.

C) The premiums are deductible for her employer and her benefits are tax-free.

D) The premiums are not deductible for her employer and her benefits are taxed.

Answer: The premiums are deductible for her employer and her benefits are tax-free.

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In an insurance contract, the applicant's "consideration" is the
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The voluntary relinquishment of a legal right is called
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