Question

Which of the following is NOT a factor in qualifying a proposed insured as a key person?

Age

Level of expertise

Marital status

Successful track record

Posted under IC22 Life Insurance Underwriting

Answer: (c).Marital status Explanation:Key person insurance is designed to protect a company against the loss of a key employee, whose skills, knowledge and experience are critical to the company's success. The person insured under this policy is referred to as the "key person". When assessing a keyman insurance proposal, underwriters look for several factors that qualify the proposed insured as a key person. These factors include the person's level of expertise, successful track record, importance to the company's operations, etc. Age is also considered, as younger key persons are typically preferred over older ones, as they are likely to work for the company for a longer period of time. Marital status, on the other hand, is not a factor in qualifying a proposed insured as a key person, as it does not affect the person's contribution to the company's operations.

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Q. Which of the following is NOT a factor in qualifying a proposed insured as a key person?

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