Exam 44: Insurance, Wills, and Trusts

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

Amelia executes a separate written instrument to amend her prior will. This separate document is

Myles obtains a property insurance policy from Nova Insurance Company for Myles's restored 1957 Chevy. Nova can cancel the policy

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

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

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

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

Orin creates a living trust to pass his assets, including stock in Petro Oil Company and other business investments, to his heirs. One advantage of this arrangement is that

Dieter's will provides for a distribution of his assets on his death. Who will "distribute" Dieter's property, and what are the steps involved?

Doctors Medical Associates obtains an insurance policy that protects its members against negligence claims by their pa?tients. This is

An insurance application is part of the insurance contract.

Feta is a partner in the game design firm GR8 Games, Inc., which ob?tains key-person life in?surance 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

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

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

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

A spendthrift trust provides for a beneficiary's transfer of his or her right to future payments of trust funds.

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 insur?ance 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.

Eighty-year-old Clark exhibits confusion, forgetfulness, and disorienta?tion. 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 men?tal decline. These facts indicate

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

A business firm may have an insurable interest in the life of any of its employees, except a key employee.