Exam 30: Insurance, wills, and Trusts

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

Edy obtains a homeowners' insurance policy with First Source Insurance Company.First Source can cancel the policy

A testator is a decedent who dies without a will.

An applicant for insurance has a duty to disclose only what the insurer asks for.

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

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

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

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

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

Regular Business,Inc.(RBI),obtains a fire insurance policy from Statistical Insurance Company on a $400,000 warehouse.The policy includes an 80-percent coinsurance clause.RBI insures the property for $320,000.In a fire,the warehouse suffers $200,000 in damage.RBI can recover

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

When insurance provides coverage against third party claims,an in?surer has a duty to defend any suit based on such a claim against the insured.

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

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

A will is probated in part to establish its validity.

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

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

Benny dies without a will,with no surviving spouse or child.Benny's survivors in?clude his granddaughter Callie,his nephew Doug,and his cousin Earl.In most states,his estate would pass to

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

Mason creates a trust to prevent his son,Newt,the beneficiary,from assign?ing his rights to future payments of income from the trust.This is