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24 terms

ch 37

STUDY
PLAY
If a life insurance applicant pays a premium but dies before the physical exam, there is obviously no coverage
False
The words used in an insurance contract are interpreted against the party who applied for the policy
False
its against the party who wrote it
An insurer has a duty to avoid the payment of claims
False
they have the duty to pay the payment of claims
Because insurance law follows contract law bad faith tort actions against insurers are not allowed
False
A testator is a decedent who dies without a will
False
A nuncupative will is an oral will
True
To publish a will means to record it in an appropriate county office
False
A spendthrift trust provides for a beneficiary's transfer of his or her rights to future payments of trust funds
False
Grace applies for a homeowners' insurance policy on her house with Heroic insurance company through Ian a broker. In this transaction Ian is
Graces agent and not Heroic's agent
Root & Branch Lumber company obtains a fire insurance policy from statistical insurers inc. on a $400,000 warehouse. The policy includes an 80 percent coinsurance clause Root & branch insures the property for 320000. In a fire the warehouse suffers 200000 in damage Root and Branch can recover
$200000
Donald applies for a life insurance policy wiht Equity Insurance Company through Fletch an agent who works for Equity. Donald pays the initial premium. Fletch writes a binder which
Indicates that a policy is pending and states its essential terms
Keri's will states I give to my sister liz my condominium in mailbu, Cal. This is
A specific devise (leaving someone real estate)
In his will Vigor makes a gift of 10000 to Wylie this
is a general besquest
Benny dies without a will (intestate) with no surviving spoue or child. benny's survivors include his granddaughter callie, his nephew doug and his cousin earl. in most states his estate would pass to
Callie
Risk management involves the transfer of certain risks from the insured to the insurr
True
Insurance is classified by the nature of the person or interest protected
False
Insurance is classified according to the nature of the risk involved
An insurance broker is an agent of an insurance company
False
A broker is the agent of the applicant
An insurance applicant is usually protected from the time an application is made if a premium is paid
True
A person can insure anything in which he or she has an insurable interest
True
A will is revocable only after the testator's death
False
The testator generally must sign a wil
true
If a person dies without a will all of his or her property automatically passes to the state
False
An inter vivos trust is a trust created by a grantor during his or her lifetime
True
A testamentary trust is created by will to begin on the settlors death
True