Exam 37: Insurance, wills, and Trusts

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

Cliff dies without a will.His survivors include his spouse Dana and his two children,Efrem and Fay.Under applicable laws,Dana will probably receive

Ginny obtains a health-insurance policy for her family from Hope Insurance Company.The policy includes an incontestability clause.Under such a clause,after a policy has been in force for a specified period or time,such as two or three years

If no heirs are found,the property of a decedent is transferred to a charitable organization.

Undue influence can occur when a named beneficiary is in a position to influence the making of a will.

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

Patty,who is divorced,owns a house.She has no reasonable expectation of benefit from the life of Quinn,her ex-spouse,but she applies for insurance on his life anyway.She also obtains a fire insurance policy on the house,which she later sells.Five years later,Quinn dies and the house is destroyed in a fire.Can Patty obtain payment on either the death of Quinn or the loss of the house? Explain.

Trustworthy Insurance,Inc.,has a valid reason to cancel a policy issued to USA Sales Company.In most states,Trustworthy could cancel the policy with

An executor is a personal representative appointed by a court for a decedent who dies without a will.

Dhani is the beneficiary of a life insurance policy on Elmo's life obtained from Famed Insurance Company.The insured under this policy is

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

An insurer has a duty to avoid the payment of claims.

A person can insure anything in which he or she has an insurable interest.

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

A person has an insurable interest in property if he or she would sustain a financial loss from damage to the property.

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

An express trust is created or declared in explicit terms.

The words used in an insurance contract are interpreted against the party who applied for the policy.

A loss sustained between the time of application and the delivery of an insurance policy may not be covered.

State law may mandate that an incontestability clause be included in an insurance policy.