Question

Can a company take key-man insurance on the lives of any employees?

a.

Yes, on the lives of any employees

b.

No, only on the lives of employees who have special skills and whose absence can affect the company adversely

c.

Only on the lives of employees who are over 50 years old

d.

None of the above

Answer: (b).No, only on the lives of employees who have special skills and whose absence can affect the company adversely Explanation:A company can take key-man insurance on the lives of certain "key" people, whose absence can affect the company adversely. These are key people and the insurance amount for such policies can be to the extent of any liability or reduction in profit resulting from the loss of special skills of the key-person.

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Q. Can a company take key-man insurance on the lives of any employees?

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