Final answer:
Insurance purchased for the continuation of a business after a key individual's death or disability is known as Business continuity insurance.
Step-by-step explanation:
In the scenario where insurance is purchased for the continuation of business in the event of the licensed producer's death or disability, the correct option is B) Business continuity insurance. This type of insurance is specifically designed to protect a business from the potential financial consequences that could follow the death, disability, or other incapacitation of a key individual whose contributions are vital to the operation and continued viability of the business. Policies like this can provide the necessary funds to either keep the business afloat during a transition period, find a replacement, or effectively manage any associated costs or debts that could otherwise destabilize the business.