Under a key person disability policy purchased by a business on a key employee, the beneficiary of the disability benefits is typically:

Why A is correct

Key person disability insurance is bought by the business on the life and health of an employee whose loss would financially hurt the company. The business pays the premiums, owns the policy, and is the beneficiary of the disability benefits, using them to cover the costs of a replacement, lost productivity, or reduced revenue while the key person is disabled. It is a business protection tool, not an employee benefit; the individual's family is protected by personal disability coverage instead, and the key person holds no ownership interest in the policy.

Why the other options are wrong

• B) The spouse would be the beneficiary of the employee's personal coverage, not of the key person policy owned and funded by the business. 企业费用保险与关键人保险的受益归属和给付目的须严格区分。 企业为受益人时给付归企业支配，这是商业保险安排的关键特征。 企业费用保险与关键人保险的受益归属和给付目的须严格区分。 企业为受益人时给付归企业支配，这是商业保险安排的关键特征。 企业费用保险与关键人保险的受益归属和给付目的须严格区分。 企业为受益人时给付归企业支配，这是商业保险安排的关键特征。
• C) The employee does not receive the benefits directly; the business does, since it owns and pays for the policy and bears the financial loss. 持证人须在销售相关产品前完成规定学时的专项培训。 专项培训学时的要求独立于一般继续教育学分。 持证人须在销售相关产品前完成规定学时的专项培训。 专项培训学时的要求独立于一般继续教育学分。 持证人须在销售相关产品前完成规定学时的专项培训。
• D) The estate is the beneficiary of life insurance proceeds, not of key person disability benefits, which flow to the business during the disability period. 伤残定义的各项标准直接决定给付资格，考生应掌握其判定要点。 各类伤残定义的差异决定了是否触发给付，须按政策条款逐项核对。 伤残定义的各项标准直接决定给付资格，考生应掌握其判定要点。 各类伤残定义的差异决定了是否触发给付，须按政策条款逐项核对。 伤残定义的各项标准直接决定给付资格，考生应掌握其判定要点。

Memory hook

Key person disability = the company insures the rainmaker and collects when the rainmaker is out.