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Exam 43: Insurance, Wills, and Trusts

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Question 31

True/False

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Under intestacy laws, a surviving spouse receives the decedent's entire estate.

A) True
B) False

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Question 32

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Maria does not execute a will before she dies. The distribution of her estate is regulated by

A) the comprehension of the natural objects of her bounty.
B) the decisions of a trustee appointed by a probate court.
C) the state's intestacy statutes.
D) the terms of a different decedent's will disposing of a similar estate.

E) None of the above
F) A) and B)

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Question 33

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A divorce occurring after a will has been written does not revoke dispositions of property made under the will to the former spouse.

Estimable Credit Company loans funds to Farmland Granaries, LLC, to buy a silo. Estimable obtains an insurance policy from Grangers Insurance, Inc., to cover the silo. Farmland also obtains a policy from Grangers to cover the silo. Later, Farmland sells the silo to Hi-Yield Harvest Company but keeps the policy. Hi-Yield also obtains a policy from Grangers to cover the silo. Estimable agrees to finance Hi-Yield's purchase of the property. A fire totally destroys the silo. Who can recover for the loss?

A life insurance company insures a large number of people with the knowledge that only a small proportion of them will die in any one year. The large number of premiums provides the funds to pay for the small number of deaths. This is

Dawn applies for a life insurance policy with Equity Insurance Company through Fletch, an agent who works for Equity. Dawn pays the initial premium. Fletch writes a binder, which

If a will does not provide how an estate will be distributed to grandchildren, under the per stirpes method of distribution, all heirs in a certain class inherit equally.

Rita is the chief executive officer for Sales Inc., a successful market research firm. The company obtains insurance on Rita's life from Tempo Insurance Company. This policy is

Insurance policies differ in relation to the interests that they protect because the types of losses that are expected vary with the nature of an activity.

Sally handwrites her will on a sheet of blank paper. This will is

Because a general bequest or devise does not single out any particular item of property to be transferred by will, a testator does not have to know the nature and extent of his or her property to create a valid will.

Jason does not execute a will before he dies. With respect to his estate, the assets are distributed first to

Finn does not execute a will before he dies, with no surviving spouse or child. His survivors include his grandson Gage and his niece Hailey. In most states, his estate would pass to

Kit has two children, Lea and Merl, both of whom predecease Kit. Lea is survived by her son Nat. Merl is survived by her daughters Opal and Pearl. On Kit's death, if the distribution of the estate is per capita, Pearl will receive

Lena executes a separate written instrument to revoke her prior will. This separate document is

In an irrevocable living trust, legal title to the trust property passes to the beneficiary.

The formalities of a will are intended to ensure that the testator understood his or her actions at the time a will was made and to help prevent fraud.

Miles obtains a property insurance policy from Nova Insurance Company for Miles's restored 1957 Chevy. Nova can cancel the policy if Miles

Les executes a will in which he leaves everything to his spouse, Mindy, and in which he appoints Norma to administer the estate. The will must be signed by

Emmett has two children, Frank and Gene, both of whom predecease Emmett. Frank is survived by his daughter Heidi. Gene is survived by his sons Ike and Jake. On Emmett's death, if the distribution of his estate is per stirpes, Heidi will receive