Final answer:
The proceeds of the life insurance policy taken out on Grover by Hall & Associates from Interstate Insurance would belong to c. Hall & Associates, as they are the policy owner and beneficiary.
Step-by-step explanation:
When a company takes out an insurance policy on one of its employees, this type of insurance is typically known as key person insurance or corporate-owned life insurance. This policy is designed to protect the company from the financial losses that may occur due to the death of a key employee whose expertise and knowledge are valuable to the business. In this scenario, since Hall & Associates has obtained the insurance policy from Interstate Insurance, Inc. on Grover's life, upon Grover's death, the proceeds of the policy would be paid out to the policy owner, which is Hall & Associates. This means that the correct answer is:
It's important to understand that the beneficiary of the life insurance policy is the entity or person that is named in the policy to receive the proceeds. Since Hall & Associates are the ones who took out the policy and paid the premiums, they are the rightful beneficiaries.