7) Business Insurance
Which of the following would describe a legal document which would dictate who can buy a deceased partners share of a business and for what amount
Buy-Sell Agreement
Statements concerning buy-sell agreements is true?
Buy-sell agreements are normally funded with a life insurance policy.
what is the purpose of key person insurance
To lessen the risk of financial loss because of the death of a key employee
a key person insurance can pay for which of the following?
costs of training a replacement
When an employer offers to give an employee a wage increase in the amount of the premium on a new life insurance policy that is called
executive bonus
all of the following are business uses of life insurance except
funding against companys general financial losses
What is incorrect concerning a Section 457 deferred compensation plan?
it has a vesting requirement
all of the following are true of key person insurance except
plan is funded by permanent insurance only
Which of the following is correct concerning the taxation of premiums in a key-person life insurance policy
premiums aren't tax deductible as a business expense
A corporation is the owner and beneficiary of the key person life policy. If the corporation collects the policy benefit then
the benefit is received tax free
who is the owner and who is the beneficiary on a key person life insurance policy
the employer is the owner and the beneficiart
all of the following are true of key person insurance except
the plan is funded by permanent insurance only
which of the following regarding deferred compensation funds is incorrect
they are usually qualified plans
