Question 1

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

Accepted Answer

A) True 
 B)False  True

Question 2

Skyler dies after having made a valid will.Skyler has died

Accepted Answer

A) in escheat. 
B) in probate. 
C) intestate. 
D) testate. 
A) in escheat. 
B) in probate. 
C) intestate. 
D) testate. D

Question 3

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

Accepted Answer

A) an urgency that Clark distribute his assets. 
B) Clark's lack of capacity. 
C) Dave's misdiagnosis. 
D) Elsa's intent to take advantage of Clark. 
A) an urgency that Clark distribute his assets. 
B) Clark's lack of capacity. 
C) Dave's misdiagnosis. 
D) Elsa's intent to take advantage of Clark. B

Question 4

Grace applies for a homeowners' insurance policy on her house with Heroic Insurance Company through Ian,a broker.In this transaction,Ian is

Accepted Answer

A) an agent for both parties. 
B) Grace's agent,and not Heroic's agent. 
C) Heroic's agent,and not Grace's agent. 
D) not an agent. 
A) an agent for both parties. 
B) Grace's agent,and not Heroic's agent. 
C) Heroic's agent,and not Grace's agent. 
D) not an agent.

Question 5

To execute a valid will,a testator must remember the "natural objects of his or her bounty."

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) by codicil. 
B) holographically. 
C) per capita. 
D) through a residuary clause. 
A) by codicil. 
B) holographically. 
C) per capita. 
D) through a residuary clause.

Question 7

Myles obtains a business liability insurance policy from Nova Insurance Company for Myles's Hydraulics & Transmission Repair shop.Nova can cancel the policy

Accepted Answer

A) if Myles increases the risk assumed by the Nova. 
B) if Myles files a claim under the policy. 
C) if Myles appears as a witness in a case brought against Nova. 
D) under no circumstances. 
A) if Myles increases the risk assumed by the Nova. 
B) if Myles files a claim under the policy. 
C) if Myles appears as a witness in a case brought against Nova. 
D) under no circumstances.

Question 8

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

Accepted Answer

A) 80 percent. 
B) 90 percent. 
C) 100 percent. 
D) 120 percent. 
A) 80 percent. 
B) 90 percent. 
C) 100 percent. 
D) 120 percent.

Question 9

An applicant for insurance has a duty to disclose only material facts that the insurer asks for.

Accepted Answer

A) True 
 B)False

Question 10

A nuncupative will is a will that is completely in the handwriting of the testator.

Accepted Answer

A) True 
 B)False

Question 11

Dyan executes her will to give "to my nephew Esau my stock in Fargo,Inc." Later,Dyan writes separately,with the same formalities required for a will,to leave the stock to her niece Ginny and cash to Esau.This writing

Accepted Answer

A) does not affect the will's gift of the stock to Esau. 
B) requires a gift of the stock in equal shares to Esau and Ginny. 
C) revokes the whole will,which must be redrafted. 
D) revokes the will's gift of the stock to Esau. 
A) does not affect the will's gift of the stock to Esau. 
B) requires a gift of the stock in equal shares to Esau and Ginny. 
C) revokes the whole will,which must be redrafted. 
D) revokes the will's gift of the stock to Esau.

Question 12

Shingle & Tile Roofing Contractor,LLC,obtains an insurance policy against liability for injuries or losses sustained by employees during the course of their employment.The policy covers claims not covered by workers' compensation insurance.This is

Accepted Answer

A) casualty insurance. 
B) fidelity or guaranty insurance. 
C) key-person life insurance. 
D) employer's liability insurance. 
A) casualty insurance. 
B) fidelity or guaranty insurance. 
C) key-person life insurance. 
D) employer's liability insurance.

Question 13

Juli types onto a computer what she intends to be "My Will" and prints it out.Juli has capacity."My Will" is

Accepted Answer

A) invalid. 
B) valid if Juli signs it. 
C) valid if Juli signs it and has three witnesses sign it. 
D) valid if Juli signs it,has three witnesses sign it,and files it in a certain state office. 
A) invalid. 
B) valid if Juli signs it. 
C) valid if Juli signs it and has three witnesses sign it. 
D) valid if Juli signs it,has three witnesses sign it,and files it in a certain state office.

Question 14

Bret obtains a fire insurance policy on his rental house with Continental Insurance Company.Like all insurance,this policy is an arrangement for

Accepted Answer

A) avoiding the assumption of responsibility. 
B) predicting a potential loss based on unknown factors. 
C) shifting the imposition of liability. 
D) transferring and allocating risk. 
A) avoiding the assumption of responsibility. 
B) predicting a potential loss based on unknown factors. 
C) shifting the imposition of liability. 
D) transferring and allocating risk.

Question 15

A coinsurance clause provides that two or more people will be covered by the same life insurance policy.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Root & Branch Lumber Company obtains a fire insurance policy from Statistical Insurers,Inc. ,on a $400,000 warehouse.The policy includes an 80-percent coinsurance clause.Root & Branch insures the property for $320,000.In a fire,the warehouse suffers $200,000 in damage.Root & Branch can recover

Accepted Answer

A) $400,000. 
B) $320,000. 
C) $200,000. 
D) $80,000. 
A) $400,000. 
B) $320,000. 
C) $200,000. 
D) $80,000.

Question 18

Lost in a canyon near Gila,Arizona,Hester writes her will in crayon,on a paper bag,while Ivan states orally how he wants his estate distributed.Most states do not permit

Accepted Answer

A) an olographic will. 
B) a nuncupative will. 
C) a will written on a paper bag. 
D) a will written in crayon. 
A) an olographic will. 
B) a nuncupative will. 
C) a will written on a paper bag. 
D) a will written in crayon.

Question 19

Insurance is classified according to the amount of the payment on a claim.

Accepted Answer

A) True 
 B)False

Question 20

Garth dies without a will.The distribution of Garth's property,including his eleven forested acres near Hope,Arkansas,is prescribed by

Accepted Answer

A) a court-appointed executor. 
B) federal probate statutes. 
C) state intestacy laws. 
D) Garth's relatives. 
A) a court-appointed executor. 
B) federal probate statutes. 
C) state intestacy laws. 
D) Garth's relatives.

Exam 29: Insurance, wills, and Trusts

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

Skyler dies after having made a valid will.Skyler has died

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

Grace applies for a homeowners' insurance policy on her house with Heroic Insurance Company through Ian,a broker.In this transaction,Ian is

To execute a valid will,a testator must remember the "natural objects of his or her bounty."

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

Myles obtains a business liability insurance policy from Nova Insurance Company for Myles's Hydraulics & Transmission Repair shop.Nova can cancel the policy

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

An applicant for insurance has a duty to disclose only material facts that the insurer asks for.

A nuncupative will is a will that is completely in the handwriting of the testator.

Dyan executes her will to give "to my nephew Esau my stock in Fargo,Inc." Later,Dyan writes separately,with the same formalities required for a will,to leave the stock to her niece Ginny and cash to Esau.This writing

Shingle & Tile Roofing Contractor,LLC,obtains an insurance policy against liability for injuries or losses sustained by employees during the course of their employment.The policy covers claims not covered by workers' compensation insurance.This is

Juli types onto a computer what she intends to be "My Will" and prints it out.Juli has capacity."My Will" is

Bret obtains a fire insurance policy on his rental house with Continental Insurance Company.Like all insurance,this policy is an arrangement for

A coinsurance clause provides that two or more people will be covered by the same life insurance policy.

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

Root & Branch Lumber Company obtains a fire insurance policy from Statistical Insurers,Inc. ,on a $400,000 warehouse.The policy includes an 80-percent coinsurance clause.Root & Branch insures the property for $320,000.In a fire,the warehouse suffers $200,000 in damage.Root & Branch can recover

Lost in a canyon near Gila,Arizona,Hester writes her will in crayon,on a paper bag,while Ivan states orally how he wants his estate distributed.Most states do not permit

Insurance is classified according to the amount of the payment on a claim.

Garth dies without a will.The distribution of Garth's property,including his eleven forested acres near Hope,Arkansas,is prescribed by

The Legal and Constitutional Environment of Business

Traditional and Online Dispute Resolution

Ethics and Business Decision Making

Torts and Cyber Torts

Intellectual Property and Internet Law

Criminal Law and Cyber Crime

Nature and Classification

Agreement in Traditional and E-Contracts

Consideration,capacity,and Legality

Defenses to Contract Enforceability

Third Party Rights and Discharge

Breach and Remedies

The Formation of Sales and Lease Contracts

Performance Breach of Sales Lease Contracts

Warranties and Product Liability

Negotiability,transferability,and Liability

Checks and Banking in the Digital Age

Security Interests in Personal Property

Creditors Rights and Bankruptcy

Mortgages Foreclosures After the Recession

Agency Relationships

Management Perspective: Independent-Contractor Negligence

Employment, immigration, and Labor Law

Sole Proprietorships, partnerships, Limited Liability Co

Corporate Formation, financing, and Termination

Corporate Directors, officers, Shareholders

Investor Protection, insider Trading, Corp Gov

Personal Property and Bailments

Real Property and Landlord-Tenant Law

Liability of Accountants Other Professionals

International Law in a Global Economy

Adapting the Law to the Online Environment: The Supreme Court Upholds a Law That Prohibits Pandering Virtual Child Pornography

Adapting the Law to the Online Environment: Should the Law Continue to Allow Business Process Patents

Management Perspective: E-Mailed Credit-Card Receipts

Case Study With Dissenting Opinion: Prestridge V Bank of Jena

Adapting the Law to the Online Environment: The Thorny Issue of Taxing Internet Sales

Adapting the Law to the Online Environment: The Debt That Never Goes Awayits Discharged in Bankruptcy but Still on the Debtors Credit Report

Adapting the Law to the Online Environment: Economic Recession Fuels the Amazon Tax Debate

Case Study With Dissenting Opinion: Kovarik V Kovarik

Unit Case Study With Dissenting Opinion: Dole Food Co V Patrickson

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