Question

What happens to the proceeds of a partnership insurance policy?

a.

They are distributed among the surviving partners

b.

They are used to pay off the deceased partner's share to their legal heirs

c.

They are used to settle any disputes among the partners

d.

None of the above

Posted under IC22 Life Insurance Underwriting

Answer: (b).They are used to pay off the deceased partner's share to their legal heirs Explanation:The proceeds of a partnership insurance policy are used to pay off the deceased partner's share to their legal heirs, without disturbing the working of the firm. This ensures continuity of the partnership business.

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