There is special term for it. It is called "dead peasants" insurance. Michael Moore discusses it extensively in his movie "Sicko". I have no idea why a company is legally allowed to take an insurance policy on an employee's life. To me, that is a blatant moral hazard - i.e. since the company controls the working conditions of said employee, it can easily devise various schemes to ruin their health while at work.Walmart had a similar plan.
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