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