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.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What happens to the proceeds of a partnership insurance policy?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What is the purpose of employer-employee scheme?

View solution

Q. Who is the proposer in employer-employee scheme?

View solution

Q. Is there a maturity benefit for the employer in employer-employee scheme?

View solution

Q. What are the two approaches to implementing employer-employee scheme?

View solution

Q. How is the premium paid by the employer treated for tax purposes in employer-employee scheme?

View solution

Q. What is HUF?

View solution

Q. Who is the Karta in HUF?

View solution

Q. What is the role of Karta in HUF?

View solution

Q. Who are the coparceners in HUF?

View solution

Q. What is the status of daughters in HUF after marriage?

View solution

Q. Can the wife of the Karta become the Karta after his demise?

View solution

Q. Is an HUF eligible for tax deductions and exemptions?

View solution

Q. Can policies be financed from the HUF income for the benefits of only one member?

View solution

Q. Who will be the owner of a policy affected under HUF?

View solution

Q. Can an HUF earn income from investment of its funds?

View solution

Q. How is the insurance cover amount for an HUF policy calculated?

View solution

Q. What is the Married Women's Property (MWP) Act?

View solution

Q. What is the provision of Section 6 of the MWP Act?

View solution

Q. Who can be the beneficiary under the MWP Act?

View solution

Q. Can the beneficiaries of policies taken under the MWP Act be changed by the proposer at any time?

View solution
View All MCQs on IC22 Life Insurance Underwriting

Recommended Subjects

Are you eager to expand your knowledge beyond IC22 Life Insurance Underwriting? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!

Avionics Engineering

Soar into the world of aviation technology with our Avionics Engineering category....

Drug and Pharmaceutical Biotechnology

Navigate the world of pharmaceuticals and biotechnology with our dedicated category....

DC Machines

Dive into the fundamentals of direct current (DC) machines with our specialized...

IC 89 Management Accounting

Boost your preparation for the IC 89 Management Accounting exam with our extensive...

Highway Engineering

Navigate the road to efficient transportation with our Highway Engineering category....

Geotechnical Engineering

Dive into the world of Geotechnical Engineering with our dedicated category. Explore...

Heat Transfer

Explore the fascinating world of heat transfer with our Heat Transfer category....

Electronics and Communication Engineering

Explore the dynamic field of Electronics and Communication Engineering with our...

Professional Communication

Hone your communication skills with our Professional Communication category. Enhance...