What Is A Buy-Sell Agreement In Insurance

The most common event covered by a purchase/sale agreement is the death of a partner, which describes the measures taken and the method of financing, such as. B the proceeds of a life insurance policy, to redeem the business interests of the deceased partner. A well-drafted agreement also includes other provisions such as a shotgun clause triggered in situations where a business partnership has deteriorated significantly, a right of first refusal vis-à-vis the other partner(s) before the sale to a foreigner, the retirement or withdrawal of a partner, the disability of a partner or other specific circumstances such as serious misconduct, imprisonment or divorce, and establishes the rules for an orderly liquidation or restructuring.

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