The ME Mechanical Group is a medium-sized machine tool company. The Group has three key executives whose retention by the Group is important to the Group's future growth and expansion of operations. The board of directors is considering several special employee benefit plans that could be implemented to make continued service with The ME Mechanical Group attractive for the three executives. Which of the following statements concerning benefit plans being considered by ME Mechanical board of directors is (are) correct? 

1. Three $100,000 ordinary life insurance policies would provide capital accumulation and estate liquidity for each of the three families. 

2. The attitude of ME Mechanical's board of directors toward portability of any benefit plan established would likely parallel that of the three executives. 

3. Evidence of insurability is usually required for small group carve-out plans.