PSI Ohio Insurance Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Study for the PSI Ohio Insurance Test. Use flashcards and multiple choice questions with explanations. Get ready to ace your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

A Business Disability Buy-Sell Policy is intended to assist with what situation?

Terminating an employee
Sale of a business due to owner’s disability
Insurance for business property
Business expansion financing

The correct answer is: Sale of a business due to owner’s disability

A Business Disability Buy-Sell Policy is designed specifically to address the situation where an owner of a business becomes disabled and is unable to continue managing or working in the business. This type of policy ensures that the remaining owners or partners have the financial means to buy the disabled owner's share of the business. This is crucial for maintaining the continuity and stability of the business, as it helps prevent ownership disputes and ensures that the business can continue to operate smoothly. The policy typically provides the necessary funds to facilitate the buyout, allowing the business to transfer ownership without financial strain. This contrasts with other options, such as terminating an employee or securing insurance for business property, which do not directly relate to the situation of an owner's disability affecting their stake in a business.