American College Exam HS330 Topic 1 Question 13 Discussion

Actual exam question for American College's HS330 exam

Question #: 13
Topic #: 1

Generally all the following statements concerning life insurance arrangements for partnership buy-sell agreements are correct EXCEPT:

AWith a cross-purchase agreement each partner purchases life insurance on the life of each of the other partners.

BWith an entity-purchase agreement the formula used for determining the number of life insurance policies needed is N (number of partners) + 1.

CWith a cross-purchase agreement the individual partners are the applicants, owners, beneficiaries and premium-payers of the policies.

DWith an entity-purchase agreement the partnership strives to maintain face amounts of coverage equal to its obligations under the agreement.

Show Suggested Answer

Suggested Answer: B

by Howard at May 04, 2022, 03:55 AM

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