business law chapter 19-20

You have expensive jewelry, what can you do to modify your homeowners policy to cover it

Endorsement and rider

When an insurance company makes payment for a loss to the party that suffered it, the insurance company is said to

Indemnify the loss

Which of these is not true about social insurance?

Primary source for Social insurance coverage is state gov

The primary source for social insurance coverage in the country is the

Social Security Act

Mackenzie would like to purchase life insurance in which the premiums will not increase over her lifetime and borrow

Whole and Straight

If proclaimed during the marker's last illness or by service personnel on active duty, some states will recognize

a nuncupative will

A hostile fire is

all of these

A court appointed male personal representative overseeing an estate is called

an administrator

A trust created during the lifetime of the settlor is

an inter vivos trust

The party for whose benefit the trust is managed is the

beneficiary

Automobile insurance coverage indemnifying insureds for damage to their own vehicles is

both

Theft insurance, automobile insurance, and disability insurance are all example of what type of insurance?

casualty

Liability insurance would be classified as a form of

casualty insurance

A fire insurance clause that requires the insured to maintain coverage equal to a certain %

coinsurance

You are moving across country and rent a trailer, what type of insurance should you buy?

coinsurance

Emma just purchased automobile insurance. The portion of Emma's automobile protects her car from hitting a tree

collision coverage

Part of auto insurance that protects your vehicle if it hits a tree

collision insurance

The stated max amount of money that can be paid on an insurance policy is the

face value

t/f: A codicil need not be executed with the same formalities as a will.

false

t/f: A holographic will as long as it was written entirely by the decedent's own hand, signed- not witness all states recognize

false

t/f: A primary care physician is needed to approve most health services in both HMOs and PPOs

false

t/f: Once made, a will cannot be changed or canceled.

false

t/f: Pre existing conditions is an insurance term used to describe when a property is uninsurable

false

t/f: Pre-existing conditions is an insurance to describe property that is run down

false

t/f: Standard policy and forms of fire insurance may be modified by an insurable interest

false

t/f: The face value of a policy is the stated minimum amount that could be paid if the harm is done

false

t/f: The face value of a policy is the stated minimum that could be paid if the harm a person is insured against occurs

false

t/f: The grace period is the time between when a claim is filed and the payment is received.

false

t/f: The insurer agrees to pay the insured for loss suffered by the beneficiary

false

t/f: The owner of a life estate may permanently dispose of the property

false

t/f: Those who die without a valid will are said to have died testate.

false

What do you purchase to provide coverage against a dishonest employee?

fidelity insurance

The type of insurance that covers structural loss due to rain, hail, earthquake, and windstorm is

fire

A life insurance clause prohibiting the insurer from refusing to perform due to fraud after the policy is one to two yea

incontestability clause

A life insurance clause prohibiting the insurer from refusing to perform due to misrepresentation for 2 years

incontestability clause

Potential to sustain a loss is known as

insurable insurance

Insurance providing protection against claims of parties who suffer injury because of negligence

liability insurance

A husband buys a type of insurance that will pay his wife a set amount if he dies

life insurance

Devon purchased a type of insurance that will pay his wife a set amount in the event of his death, that is called

life insurance

The clear intention to make a will without undue influence of others is called

none of these

Medicare

provides both medical and hospital insurance for Americans 65 and older

The trust that protects the beneficiary's interest in the subject property from the beneficiary's creditors is

spendthrift trust

The female maker of a will is properly called

testatrix

t/f: A trust created in accordance with directions in the will of a decedent is labeled a testamentary trust.

true

t/f: A will is a legal expression by which a person directs how his or her property is to be distributed after death.

true

t/f: An incontestability clause is usually included in a life insurance policy

true

t/f: An incontestability clause is usually included in a life insurance policy.

true

t/f: Easements are irrevocable rights granted to allow limited use of another's land with no posses

true

t/f: Fire insurance coverage can be modified by policy attachments called endorsements

true

t/f: Most life insurance policies contain Exemptions that excuse the insurer from paying the death benefit in circumstances

true

t/f: Most life insurance policies contain exemptions allowing insurer to not pay someone

true

t/f: No-Fault insurance requires that parties to an automobile accident be indemnified by their own insurance company

true

t/f: No-fault insurance requires that parties to an automobile accident use own insurance

true

t/f: Some statutory provisions allow certain relatives to override the wills terms and receive more

true

t/f: The creator of a trust is known as the settlor.

true

A will only takes effect

upon the death of the maker

Which of the following situations would create an invalid will for Jan?

wants to create a will; 65 years old, children witness and will inherit