Question 4009 of 287 · Texas Life, Accident and Health Agent Exam
A buy-sell agreement funded by life insurance is intended to
Exactly one answer is correct.
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Correct answer to question 4009
- B: provide cash to buy a deceased owner's share of the business from the heirs
Explanation
The agreement fixes the price and terms for a sale of the interest at an owner's death, and the insurance provides the funds. In a cross purchase plan each owner insures the others.
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