IBM Pays for a Life Insurance Policy on Each of Its

question 57

Multiple Choice

IBM pays for a life insurance policy on each of its employees where the _ is usually the beneficiary. IBM has a second insurance policy on some of its key employees. On this second policy, is the beneficiary.

• A) nearest of kin; the insured
• B) spouse; IBM
• C) company; the nearest of kin
• D) insured; the insurer
• E) employee; the company

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Definitions:

Insurance Agent

A professional authorized to sell and manage insurance policies on behalf of insurance companies.

Homeowners' Policy

An insurance policy that provides coverage for damages to a person's home and assets in the home, along with liability coverage for accidents that occur within the home or on the property.

Exclusion

The act of preventing someone's participation or denying access to a group, area, or benefit.

Life Insurance Contract

An agreement in which an insurer promises to pay a designated beneficiary a sum of money upon the insured person's death, in exchange for premiums paid by the policyholder.