Question

Which of the following types of insurance protects business debts of a firm which is dependent on a key individual for continuing its business?

a.

Property insurance

b.

Life assurance

c.

Keyman insurance

d.

Accident/Liability insurance

Posted under IC85 Reinsurance Management

Answer: (c).Keyman insurance Explanation:Keyman insurance is a type of insurance that is taken out by a company to protect itself against the financial loss that it may suffer in the event of the death or disability of a key employee or executive. This type of insurance is designed to protect the business debts of a firm which is dependent on a key individual for continuing its business. The sum insured in keyman insurance is not related to the value of a person but the value of his loss to his firm and the premium is paid by the firm as a business expense.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. Which of the following types of insurance protects business debts of a firm which is dependent on a key individual for continuing its business?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. ‘If the risk is not a very good risk the insurer may keep less and the amount to be reinsured will therefore increase in case of treaties without a line limitation.’ This is true for which of the following categories of reinsurance?

View solution

Q. Which of the following is a normal method of reinsurance in miscellaneous accident business?

View solution

Q. How is the per event retention managed?

View solution

Q. How is the per risk retention scaled down?

View solution

Q. What are the two types of retention required to be managed?

View solution

Q. What is retention in practice a combination of?

View solution

Q. Are there any formulas or rules that enable an insurer or a reinsurer to decide on their retention?

View solution

Q. Who approves the retention limits set out by the management of an insurer?

View solution

Q. What is the purpose of setting retention limits by management of an insurer?

View solution

Q. Standard Fire and special peril insurance is a principal class of _____________

View solution

Q. Why is accumulation control essential in insurance?

View solution

Q. What is accumulation in insurance?

View solution

Q. Who pays the premium for keyman insurance?

View solution

Q. What is the sum insured related to in keyman insurance?

View solution

Q. What is keyman insurance?

View solution

Q. What are some peculiarities in reinsuring a life insurance policy?

View solution

Q. What is a key risk faced by a direct insurer that relies too heavily on one reinsurer?

View solution

Q. What is the life insurance reserve?

View solution

Q. What is the role of a reinsurer in life insurance?

View solution

Q. What has been the trend in life insurance expansion over the last 20 years?

View solution
View All MCQs on IC85 Reinsurance Management

Recommended Subjects

Are you eager to expand your knowledge beyond IC85 Reinsurance Management? 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!

Environmental Biotechnology

Discover the intersection of biology and environmental science with our Environmental...

Basic Electrical Engineering

Master the fundamentals of Electrical Engineering with our specialized category....

Biology

Dive into the realm of life sciences with our Biology category. Explore the wonders...

Marketing and Marketing Management

Uncover the strategies and tactics of marketing with our Marketing and Marketing...

Drug and Pharmaceutical Biotechnology

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

Environment Management

Master the art of Environment Management with our specialized category. Explore...

Bioinformatics

Unlock the power of data analysis in biology with our Bioinformatics category....

Corrosion Engineering

Master the art of preventing material deterioration with our Corrosion Engineering...

Mass Transfer

Delve into the science of Mass Transfer with our specialized category. Explore...