Key-Man Insurance is a Term Assurance Policy, where, the Sum-Assured is Linked to --.
A)Business-Profitability of the Company
B)Number of Employees
C)Chief Executive Officer (C.E.O.)'s Personal Income
D)Personal Incomes of All the Employees

Question

Quizplus · Accepted Answer

Key-Man Insurance is linked to the business profitability of the company, as it is designed to compensate the business for financial losses that would arise from the death or extended incapacity of an important member of the business, referred to as the "key man." This type of insurance policy is taken out by a business to insure against the loss of a key employee whose knowledge, work, or overall contribution is considered uniquely valuable to the company.

Key-Man Insurance Is a Term Assurance Policy, Where, the Sum-Assured