Question

Why is partnership insurance important?

a.

To ensure continuity of the partnership business after the death of a partner

b.

To provide financial support to the surviving partners in case of a dispute

c.

To protect the partnership against losses due to market fluctuations

d.

None of the above

Posted under IC22 Life Insurance Underwriting

Answer: (a).To ensure continuity of the partnership business after the death of a partner Explanation:Partnership insurance is important to ensure the continuity of the partnership business after the death of a partner. Without partnership insurance, the surviving partners may have to sell assets or close down the business to pay the deceased partner's share.

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