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Who Is a Key Person?
Deciding exactly who is a key person in a business is sometimes easy, sometimes more difficult. Generally, in a smaller business owned by one person or just a few people, the owners can easily be identified as key people. However, even in very small businesses, certain employees who are not owners may also play key roles. The example of a chief photographer mentioned previously serves well here. Even if the photographer is a non-owner employee, he obviously is important to the success of the ad agency and is a candidate for key person insurance.
Critical Financial Role
Whether the person is an employee or an owner-employee, the individual must serve a role that is critical to the financial health of the business. The role might be in management, finance, sales, professional or technological expertise, production or any other area or combination of areas in which, without that person's contribution, the business would be in danger of suffering financial loss. As you attempt to identify employees or owner, employees who qualify as key people, look for unique skills, business contacts, technical knowledge or other contributions that could not easily or quickly be replaced by someone else. Having an employee who serves in such a capacity gives a business an insurable interest in the key person-an interest that may legitimately be fulfilled by insurance.
It is interesting to contrast the characteristics that identify a key person with someone who does not fit that profile. For example, sometimes high compensation is used as a guideline, but salary alone is not adequate for identifying a key person, especially when the person works for a larger business. High compensation may equate with a highly competent executive of a large business, but if others in the business could step in immediately to assume that person's responsibilities, very little, if any, negative financial consequences would occur. Without an adverse financial result, there is no need for key person insurance.
On the other hand, a similar individual employed by a small or medium-sized company that employs no one else with the same talents is likely to be a key person whose absence could cause financial problems. You'll find that some insurers will not even write key person insurance for large businesses that employ many people in similar capacities.
Proprietorships, Partnerships, Corporations
Key person Insurance is available to all forms of business, regardless of the type of ownership. Sole proprietors may purchase key person insurance on their own lives and/or the lives of one or more key employees.
Each partner in a partnership may be covered, typically by a policy the partnership entity owns. Partners, too, might have key non-owner employees for whom key person insurance is appropriate.
And both C and S corporations are eligible to purchase key person insurance on owners and key employees. In all cases, however, the best prospects are smaller or closely held companies where business success hinges on relatively few people-possibly just one person. As you might suspect, the tax consequences may differ depending on the type of business ownership: we'll see how soon.
How Key Person Life Insurance Works
Let's first consider key person life insurance, which pays benefits if the insured key person dies while the policy is in force. Remember, this insurance is written for the benefit of the business, not the key person.

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continuing education insurance

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Continuing education programs have made it feasible for anyone to either furthur their present career or start a new one all together. Insurance continuing education was specifically produced for those people that desire to enter the insurance industry beginning a career as an agent, adjuster, broker, or underwriter.|Many individuals are choosing a career in the profitable business of insurance. It's possible to get your education on-line to become an agent, adjuster,underwriter, or broker with insurance continuing education.

Insurance continuing education is different for each and every individual and in every state.|Each state in the country has their own guidelines for insurance continuing education, but it is not that tough to find the necessary certifications online to get that education. You will find online courses for just about each and every kind of CE that's needed within the insurance business, such as much more complex programs for states like Texas that have strict requirements for their agents. The curriculum is not only created to keep education current, but also to assist professionals to increase their company and their own productivity as a result of taking the CE courses. Keeping present licensure in the insurance business is mandatory, because the job cannot be performed legally with out proper state licensing.
insurance continuing education
Specialized plans for continuing education consist of classes for risk management, financial services, insurance company managers, company owners, and other specialties within the indemnity industry. The position of each employee will dictate which continuing education courses have to be taken. In general, most states require an annual or bi-annual refresher course for all agents and experts, but this can vary depending on the particular certification that the employee has, as well as the state that they reside and work in. Most agents or professionals will discover of their particular requirements to maintain their licensure in their initial training.

There are courses in insurance continuing education for agents, adjusters, brokers, and underwriters, as well as programs for risk management along with other specialties. The classes for agents, brokers, underwriters, and adjusters cover commercial and private lines, property, casualty, life and health, as well as ethics courses, legal education, and flood insurance CE.

Every state has different requirements for continuing i education, and every program that exists is required to be certified by the state Department of Insurance in order to be an approved technique of continuing education.Insurance continuing education is different for every person and in every state. In insurance continuing education Illinois is fairly ahead, and a great percentage of people prefer to take their test online within the state.

California insurance continuing education involves numerous modules, and although some are necessary, a few will be optional.

There are courses in insurance continuing education for agents, adjusters, brokers, and underwriters, also as programs for risk management and other specialties. It's a known fact that life insurance continuing education online is quite economical when compared to the normal courses available at your local insurance training school

Apart from being quite economical, it's completely convenient, and that is why so numerous people shift to this version instead of worry about the local centers and their timings. It's a recognized fact that life insurance continuing education on-line is quite economical when compared to the regular courses available at your local insurance training school.

Check out courses online to see what you can find for insurance continuing education. Insurance continuing education will help you reach your financial and career goals vey quickly.

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