Exam 43: Insurance, Wills, and Trusts

If a will does not provide how an estate will be distributed to grandchildren, under the per capita method of distribution, an heir takes the share that his or her deceased parent would have been entitled to inherit.

With a constructive trust, a court declares a property owner to be a trustee for parties who are, in fairness, entitled to the benefits that flow from the property.

A testator can revoke a will by having someone else tear it up in the testator's presence and at his or her direction.

Under intestacy laws, if Darlene has no heirs, then the property of her estate

If a trustee fails to comply with the terms of the trust or the governing statute, he or she is personally liable for any loss.

On the death of the owner, property can be transferred through a will, a trust, or a state law prescribing its distribution. This indicates our laws require that, on death, title to property must be

An insurance broker is most likely

Roma obtains a fire insurance policy on her house with Safe-wise Insurance Company. This policy is an arrangement for

Red obtains a fire insurance policy on his vacation cabin near Smoky Mountain from Torchlight Insurance Company. The cabin is lost in a fire, but the parties dispute the amount of Torchlight's liability under an ambiguous clause in the policy. A court would most likely

An insurable interest in property need not exist when a policy insuring against its damage or loss is purchased.

The trustee's duty of loyalty requires that he or she act in the exclusive interest of the grantor or settlor.

At the grantor's death, assets held in a living trust revert to the decedent's estate.

Greta applies for a homeowners' policy with Home Insurance Company through Ivy, an insurance agent. As a general rule, Home is bound by

Clark obtains from Dependable Insurance Inc. a policy that provides if a dispute arises between the parties concerning the settlement of a claim, the dispute must be submitted to an impartial third party, not a court, for resolution. This is

Insurance contracts are usually obtained through an agent, who works as an independent contractor.

Rollo opens an account for $250,000 at Savers Bank. The account provides that the funds are held in trust for Thea, Rollo's daughter. This is

Insurance is an arrangement for transferring and allocating risk.

By insuring property, its owners protect themselves.

Under intestacy laws, if no heirs exist, then the state assumes ownership of the property of an estate.

Carl dies without a will, survived by his granddaughter Dora and her brother Elton. The grandchildren are Carl's