Which of the following best describes a split dollar arrangement in insurance?

A split dollar arrangement in insurance refers to a shared ownership structure of a life insurance policy, typically between two parties, often an employer and an employee. In this setup, both parties contribute to the policy in a manner that they both benefit from its coverage and cash value. Generally, one party pays the premiums while the other party has a claim to the death benefit or cash value of the policy upon certain conditions being met, which might include the termination of employment or the end of the contractual agreement. This arrangement is commonly used in corporate contexts but can also be applied to other cooperative relationships.

The other options do not accurately capture the nature of split dollar arrangements. While it is frequently used in business environments, it is not limited to business partnerships, nor is it exclusive to personal insurance needs or government programs. Split dollar arrangements serve to leverage shared resources for mutual benefit, making answer A the most accurate description.