Question 1

A testator is a decedent who dies without a will.

Accepted Answer

A) True 
 B)False

Question 2

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.E) A) and D)
F) A) and B)

Question 3

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.E) B) and C)
F) A) and B)

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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.E) C) and D)
F) None of the above

Question 9

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

Accepted Answer

A) True 
 B)False  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.E) All of the above
F) A) and B) D

Question 11

State law may mandate that an incontestability clause be included in an insur-ance policy.

Accepted Answer

A) True 
 B)False

Question 12

An executor is a personal representative appointed by a court for a dece-dent who dies without a will.

Accepted Answer

A) True 
 B)False  False

Question 13

Edy obtains a property insurance policy with First Source Insurance Company for Edy's fishing trawler.First Source can cancel the policy

Accepted Answer

A)  if Edy appears as a witness in a case against First Source.
B)  if Edy fails to pay the premiums.
C)  if Edy makes changes that add to the trawler's value.
D)  under no circumstances.E) B) and C)
F) A) and B)

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

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.E) None of the above
F) All of the above

Question 17

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 18

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

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A)  80 percent.
B)  90 percent.
C)  100 percent.
D)  120 percent.E) A) and B)
F) A) and C)

Question 20

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.E) B) and C)
F) A) and D)

Exam 29: Insurance, wills, and Trusts

A testator is a decedent who dies without a will.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedFalse

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

Correct AnswerverifiedD

State law may mandate that an incontestability clause be included in an insur-ance policy.

Correct AnswerverifiedShow Answer

An executor is a personal representative appointed by a court for a dece-dent who dies without a will.

Correct AnswerverifiedFalse

Edy obtains a property insurance policy with First Source Insurance Company for Edy's fishing trawler.First Source can cancel the policy

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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D

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