Exam 45: Insurance,wills,and Trusts

Holly obtains an insurance policy from Inviolable Insurance Corporation (IIC).IIC may cancel,or refuse to renew,the policy because of

Insurance coverage is never effective until a formal written policy is issued.

A business firm may have an insurable interest in the life of a key employee.

EZ Rentals Company wants to insure the equipment that it rents to the public.To obtain insurance,EZ must have an insurable interest in the equipment

Isabel obtains a fire insurance policy on her home from Justice Insurance Company.The home is lost in a fire,but the parties dispute the amount of Justice's liability under an ambiguous clause in the policy.A court would most likely

To "publish" a will means to record it in the appropriate county office.

A will must normally be attested to by two or three witnesses.

Donald applies for a life insurance policy with Equity Insurance Company through Fletch,an agent who works for Equity.Donald pays the initial premium.Fletch writes a binder,which

Eighty-year-old Clark exhibits confusion,forgetfulness,and disorientation.Dave,Clark's doctor,believes that the symptoms indicate dementia.Elsa,who has significant contact with Clark,believes that he is in a state of mental decline.These facts indicate

The assets in Dong's estate,including the value of his home on Elm Street and its contents,are insufficient to pay in full all of the gifts provided for in his will.His heirs will receive

Mena applies for a homeowners' insurance policy on her house with Neighbors Insurance Company through Obie,an agent who works for Neighbors.In this transaction,Obie is

An insured's lack of an insurable interest is an absolute defense against payment.

Because insurance law follows contract law,bad faith tort actions against insurers are not allowed.

Misstatements or misrepresentations in an application for insurance can void a policy.

Don executes a will leaving half of his farm to his spouse Elsie and the rest to his sons,Frank and Greg,in equal shares.The will disinherits a third son,Hal.Don and Elsie divorce,but Don dies before changing his will.Under the Uniform Probate Code

Rolling Transport & Storage Corporation wants to insure its warehouse to obtain the maximum possible recovery for the lowest possible premium.To obtain the maximum recovery under a coinsurance clause,the percentage of the value of the property that should be insured is

According to the terms of Carmen's will,specific gifts are made,and taxes and other estate expenses and debts are paid.The assets of Carmen's estate that remain are

Lani is asked to serve as a witness to Mona's will.To qualify,Lani must be

The trustee is the person for whose benefit a trust is held.

Keri's will states,"I give to my sister Liz my condominium in Malibu,California." This is