Alain and Bette are partners who own and operate Cakes n' Pies,a chain of dessert restaurants. Their partnership obtains insurance on Alain and Bette's lives. This is

Question

Quizplus · Accepted Answer

The insurance obtained on Alain and Bette's lives is most likely key-person insurance, which is designed to protect a business from financial losses that would result from the death or disability of a key employee or partner. In this case, Alain and Bette are the key partners who run the business, and the insurance would provide funds to help cover expenses and keep the business running if one of them were to pass away unexpectedly. Disability insurance would provide benefits if Alain or Bette became disabled and couldn't work, while major medical insurance would cover medical expenses for illness or injury, but neither of these types of insurance would be specifically designed to protect the business from the loss of a key partner's contributions. Liability insurance, on the other hand, would protect the business from legal claims for damages resulting from its operations, but this is not related to the insurance obtained on Alain and Bette's lives.

Alain and Bette Are Partners Who Own and Operate Cakes