Question 1

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

Accepted Answer

A) True 
 B)False  True

Question 2

Ratzo is asked to be a witness to Sade's will. Before attesting to the will,

Accepted Answer

A)  Ratzo does not have to read the will or be informed of its contents. 
B)  Ratzo must read the will and recite its contents. 
C)  Sade must orally tell Ratzo of the will's contents. 
D)  Sade's attorney must read the will aloud to Ratzo. 
A)  Ratzo does not have to read the will or be informed of its contents. 
B)  Ratzo must read the will and recite its contents. 
C)  Sade must orally tell Ratzo of the will's contents. 
D)  Sade's attorney must read the will aloud to Ratzo. A

Question 3

Feta is a partner in the game design firm GR8 Games, Inc., which obtains key-person life insurance on Feta in the amount of $1 million from Halo Insurance Company. Feta quits GR8 Games to join Icy Applications, Inc. Feta dies. Under the principle of insurable interest, Halo must pay the $1 million to

Accepted Answer

A)  Feta's spouse Jo. 
B)  GR8 Games. 
C)  Icy Applications. 
D)  no one. 
A)  Feta's spouse Jo. 
B)  GR8 Games. 
C)  Icy Applications. 
D)  no one. B

Question 4

In defense against payment, an insurance company can raise any of the defenses that would be valid in an ordinary action on a contract.

Accepted Answer

A) True 
 B)False

Question 5

A party must own property to have an insurable interest in it.

Accepted Answer

A) True 
 B)False

Question 6

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 7

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.

Question 8

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 9

If a life insurance applicant pays a premium but dies before the physical exam, there is obviously no coverage.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A)  a collateral heir. 
B)  a lineal descendant. 
C)  eighteen years of age or older. 
D)  mentally competent. 
A)  a collateral heir. 
B)  a lineal descendant. 
C)  eighteen years of age or older. 
D)  mentally competent.

Question 11

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

Accepted Answer

A)  Haya's appearance as a witness against IIC. 
B)  Haya's gender. 
C)  Haya's national origin. 
D)  none of the choices. 
A)  Haya's appearance as a witness against IIC. 
B)  Haya's gender. 
C)  Haya's national origin. 
D)  none of the choices.

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Speedy Shipping Corporation applies to TransInsurance Company for a fire insurance policy on Speedy's warehouse. On the application, Speedy misrepresents the age of the property to obtain a lower premium. When a fire soon destroys the warehouse, TransInsurance can

Accepted Answer

A)  deny payment, because a fire destroyed Speedy's warehouse. 
B)  deny payment, because of Speedy's fraud in the application. 
C)  not deny payment, because a fire destroyed Speedy's warehouse. 
D)  not deny payment, because the application is not part of the policy. 
A)  deny payment, because a fire destroyed Speedy's warehouse. 
B)  deny payment, because of Speedy's fraud in the application. 
C)  not deny payment, because a fire destroyed Speedy's warehouse. 
D)  not deny payment, because the application is not part of the policy.

Question 14

A constructive trust is "constructed" by a property owner to fulfill certain unique functions outside the usual bounds of a trust.

Accepted Answer

A) True 
 B)False

Question 15

The assets in Hong'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

Accepted Answer

A)  full payment in order of seniority until the assets are exhausted. 
B)  nothing-the assets will descend to the state. 
C)  reduced benefits. 
D)  the option of distributing the assets according to their wishes. 
A)  full payment in order of seniority until the assets are exhausted. 
B)  nothing-the assets will descend to the state. 
C)  reduced benefits. 
D)  the option of distributing the assets according to their wishes.

Question 16

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

Accepted Answer

A)  acknowledges the application and promises to consider it. 
B)  attests to the truth of each statement in the application 
C)  evidences receipt of the payment of the initial premium. 
D)  indicates that a policy is pending and states its essential terms. 
A)  acknowledges the application and promises to consider it. 
B)  attests to the truth of each statement in the application 
C)  evidences receipt of the payment of the initial premium. 
D)  indicates that a policy is pending and states its essential terms.

Question 17

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 18

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

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A)  Ginny cannot contest Hope's insurable interest. 
B)  Ginny cannot contest Hope's refusal to pay a claim under the policy. 
C)  Hope cannot contest Ginny's eligibility for continued coverage. 
D)  Hope cannot contest Ginny's statements in the application. 
A)  Ginny cannot contest Hope's insurable interest. 
B)  Ginny cannot contest Hope's refusal to pay a claim under the policy. 
C)  Hope cannot contest Ginny's eligibility for continued coverage. 
D)  Hope cannot contest Ginny's statements in the application.

Question 20

Sherman dies without a will, survived by his granddaughter Roxy and Roxy's brother Pio. Roxy and Pio are Sherman's

Accepted Answer

A)  collateral heirs. 
B)  settlors. 
C)  trustees. 
D)  lineal descendants. 
A)  collateral heirs. 
B)  settlors. 
C)  trustees. 
D)  lineal descendants.

Exam 37: Insurance, Wills, and Trusts

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

Ratzo is asked to be a witness to Sade's will. Before attesting to the will,

In defense against payment, an insurance company can raise any of the defenses that would be valid in an ordinary action on a contract.

A party must own property to have an insurable interest in it.

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

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

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

If a life insurance applicant pays a premium but dies before the physical exam, there is obviously no coverage.

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

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

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

Speedy Shipping Corporation applies to TransInsurance Company for a fire insurance policy on Speedy's warehouse. On the application, Speedy misrepresents the age of the property to obtain a lower premium. When a fire soon destroys the warehouse, TransInsurance can

A constructive trust is "constructed" by a property owner to fulfill certain unique functions outside the usual bounds of a trust.

The assets in Hong'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

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

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

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

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

Sherman dies without a will, survived by his granddaughter Roxy and Roxy's brother Pio. Roxy and Pio are Sherman's

The Legal Environment

Constitutional Law

Courts and Alternative Dispute Resolution

Torts and Cyber Torts

Intellectual Property and Internet Law

Criminal Law and Cyber Crime

Ethics and Business Decision Making

International Law in a Global Economy

Nature and Classification

Offer and Acceptance

Consideration, Capacity, and Legality

Defenses to Contract Enforceability

Third Party Rights and Discharge

Breach and Remedies

The Formation of Sales and Lease Contracts

Performance and Breach of Sales Lease Contracts

Warranties and Product Liability

Negotiable Instruments: Transferability Liability

Checks and Banking in the Digital Age

Secured Transactions

Creditors Rights and Bankruptcy

Mortgages Foreclosures After the Recession

Agency Relationships in Business

Employment, Immigration, and Labor Law

Employment Discrimination and Diversity

Sole Proprietorships and Private Franchises

All Forms of Partnership

Limited Liability Companies Special Business Forms

Corporate Formation, Merger, and Termination

Management and Ownership of a Corporation

Investor Protection, Insider Trading, Corp Gov

Promoting Competition

Consumer and Environmental Law

Liability of Accountants Other Professionals

Personal Property and Bailments

Real Property and Landlord-Tenant Law

Filters