Question 1

To probate a will means to release it to the media

Accepted Answer

A) True 
 B)False

Question 2

Without an insurable interest,there is no enforceable insurance contract.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) Maya's closest relatives. 
B) codicil. 
C) intestacy laws. 
D) will substitutes.

Question 5

There is little state regulation of the insurance industry.

Accepted Answer

A) True 
 B)False

Question 6

Alain and Bette are partners who own and operate Cakes n' Pies,a chain of dessert restaurants. Their partnership obtains insurance on Alain and Bette's lives. This is

Accepted Answer

A) disability insurance. 
B) major medical insurance. 
C) key-person insurance. 
D) liability insurance.

Question 7

Cooks Delight Corporation makes and sells kitchen appliances. To cover injuries to consumers if the appliances prove defective,Cooks should obtain

Accepted Answer

A) major medical insurance. 
B) disability insurance. 
C) liability insurance. 
D) life insurance.

Question 8

For Melinda's will to be valid,she must be mentally competent at the time of

Accepted Answer

A) death. 
B) the acquisition of the property to be distributed under the will. 
C) the making of the will. 
D) the probate of the will.

Question 9

Per capita is a method of dividing an intestate share of an estate.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

A will can be partially revoked.

Accepted Answer

A) True 
 B)False

Question 12

Jackie's will states,"I leave my red Corvette to Angela." This is

Accepted Answer

A) a specific legacy. 
B) a devise. 
C) an execution. 
D) a general legacy.

Question 13

Donovan obtains from Equity Insurance Company a policy that provides that if the parties cannot agree on the amount of a loss covered by the policy,an estimate of the value by an impartial third party can be demanded. This is

Accepted Answer

A) an antilapse clause. 
B) an arbitration clause. 
C) an appraisal clause. 
D) an incontestability clause.

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Property insurance cannot be canceled for nonpayment of premiums.

Accepted Answer

A) True 
 B)False

Question 16

An insurance company may cancel an insured's policy for any reason and at any time.

Accepted Answer

A) True 
 B)False

Question 17

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.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Under a multiple insurance clause,a homeowner who insures a home for 80 percent of its value can recover only 80 percent of the cost for damage to it.

Accepted Answer

A) True 
 B)False

Question 20

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 enter a contest sponsored by Hope or its affiliate. 
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.

Exam 43: Insurance, wills, and Trusts

To probate a will means to release it to the media

Without an insurable interest,there is no enforceable insurance contract.

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

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

There is little state regulation of the insurance industry.

Alain and Bette are partners who own and operate Cakes n' Pies,a chain of dessert restaurants. Their partnership obtains insurance on Alain and Bette's lives. This is

Cooks Delight Corporation makes and sells kitchen appliances. To cover injuries to consumers if the appliances prove defective,Cooks should obtain

For Melinda's will to be valid,she must be mentally competent at the time of

Per capita is a method of dividing an intestate share of an estate.

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

A will can be partially revoked.

Jackie's will states,"I leave my red Corvette to Angela." This is

Donovan obtains from Equity Insurance Company a policy that provides that if the parties cannot agree on the amount of a loss covered by the policy,an estimate of the value by an impartial third party can be demanded. This is

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

Property insurance cannot be canceled for nonpayment of premiums.

An insurance company may cancel an insured's policy for any reason and at any time.

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.

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

Under a multiple insurance clause,a homeowner who insures a home for 80 percent of its value can recover only 80 percent of the cost for damage to it.

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