In a Key Employee life policy purchased on C at ABC Incorporated, which statements about the parties involved are true?

In a Key Employee life insurance policy, the company takes out a life insurance policy on a key employee to provide financial protection in case that employee passes away. In this scenario, it's important to understand the roles of the parties involved.

The key employee, referred to as C, is indeed the insured individual under the policy. This means that the life insurance covers C's life, and in the event of their death, the policy will provide a payout.

Additionally, ABC Incorporated, as the employer, owns the policy. Being the policy owner means that ABC has control over the policy, including the ability to pay premiums, make changes, and designate beneficiaries. In most cases, the company is also the beneficiary, receiving the death benefit when the insured person (C) passes away.

Thus, recognizing that ABC is both the insured party (for C) and the policy owner confirms that both statements about ABC being the insured and the policy owner are true. This understanding leads to the conclusion that the correct response acknowledges both of these roles as legitimate, making the choice encompassing these aspects accurate.