Exam 29: Insurance, wills, and Trusts

Insurance is classified according to the amount of the payment on a claim.

A person can insure anything in which he or she has an insurable interest.

Cliff dies without a will.His survivors include his spouse Dana and his two children,Efrem and Fay.Under applicable laws,Dana will probably receive

A divorce revokes an entire will.

Kerin obtains a property insurance policy for her art collection from Lawton Insurance Company.Kerin can cancel the policy

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

The consideration paid to an insurer to obtain an insurance policy is the premium.

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

Garth dies without a will.The distribution of Garth's property,including his eleven forested acres near Hope,Arkansas,is prescribed by

Lost in a canyon near Gila,Arizona,Hester writes her will in crayon,on a paper bag,while Ivan states orally how he wants his estate distributed.Most states do not permit

Dyan executes her will to give "to my nephew Esau my stock in Fargo,Inc." Later,Dyan writes separately,with the same formalities required for a will,to leave the stock to her niece Ginny and cash to Esau.This writing

Liability insurance protects against liability imposed on the insured as a result of injuries to the person or property of another.

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

A will is probated in part to establish its validity.

Undue influence can occur when a named beneficiary is in a position to influence the making of a will.

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

The trustee is the person for whose benefit a trust is held.

Philomena dies without a will.A court appoints Quigley to handle the probate of Philomena's estate.The administrator of the estate is

An applicant for insurance has a duty to disclose only material facts that the insurer asks for.