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