Final answer:
In an Entity Purchase Plan, the business is the premium payor, beneficiary, and policyholder, but is not the insured. The role of the insured is that of the individual shareholder or partner whose life is insured.
Step-by-step explanation:
In an Entity Purchase Plan, which is a type of Buy-Sell Agreement, there are solidly defined roles regarding life insurance policies taken on the partners or shareholders of a business for the purpose of business continuity upon their death. The business plays specific roles in such an arrangement:
The business is the premium payor, meaning it pays the life insurance premiums.
The business is the beneficiary of the life insurance policy and receives the death benefit.
The business is also the policyholder, effectively owning the policy on the life of the shareholder or partner.
However, the business is not the insured; rather, it is the individual shareholder or partner whose life is being insured. Therefore, under an Entity Purchase Plan form of a Buy-Sell Agreement, the business is all the following, except B. Insured.