Exam 36: Insurance, Wills, and Trusts

Under an antilapse clause, an insurance policy will not lapse under any circumstances.

A will is required to be in writing only if real property is being transferred.

Kelsey obtains a business liability insurance policy from Loyal Insurance Company for Kelsey's Modeling & Hobby Crafts store. When an event occurs that gives rise to a claim, the insurance company has a duty to​

Gus dies intestate. The debts of the estate are paid by Gus's

When a person dies without a valid will, and no heirs exist, the state will assume ownership of the property.

According to the terms of Ramona's will, specific gifts are made, and taxes and other estate expenses and debts are paid. The assets of Ramona's estate that remain are​

An incorrect statement as to the age of the insured provides an insurance company with an excuse to avoid payment on the insured's death.

Maya dies without a will. The distribution of Maya's estate is prescribed by​

The owners of Designer Apps, Inc., want to execute wills. Eve is fifteen years old, Fran is seventeen, and Gail is nineteen. In most states, those with the capacity to execute a will are​

One who dies after having made a valid will is said to have died intestate.

An absolute defense against payment exists if the insurer can show that the insured lacked an insurable interest.

In his will, Terrence leaves $10,000 to each of his three children. However, after Terrence dies and all his debts are paid, there is only $9,000 left in his estate. Each child will receive​

In his will, Bryson makes a gift of $12,000 to Curtis. This is​

Insurance coverage is always effective the moment an insurance broker accepts the applicant's first payment toward the premium.

Commerce & Business Insurance, Inc., has a valid reason to cancel a policy issued to DIY Auto & Truck Parts Company. In most states, Commerce & Business could cancel the policy on​

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​

Frank applies to Guard Dog Insurance Company for homeowners' insurance. The company issues a policy, but later discovers that Frank's application includes several misstatements. Most likely, these misstatements can

The words used in an insurance contract are given their ordinary meanings in light of the nature of the coverage involved.

Ann and Burt are partners in Delta Associates. Burt takes ad-vantage of a partnership opportunity for personal gain that causes Delta's business to suffer. A court orders Burt to hold the profits in trust for the partnership. This is​

Anna obtains a business liability insurance policy for her Brew & Bagels Coffee Shop from Choice First Insurance Company. When an event occurs that gives rise to a claim, each party has a duty to