Test 4

Front 1

Underwriter

Back 1

a financial professional that evaluates the risks of insuring a particular person

Front 2

Insured

Back 2

a person covered from liabilities under an insurance plan

Front 3

Insurer

Back 3

the party in an insurance contract undertaking to pay compensation and overall liability

Front 4

Premium

Back 4

amount of money that an individual or business must pay for an insurance policy

Front 5

Insurable Interest

Back 5

people or possessions not subject to financial loss from an event do not have an insurable interest

Front 6

Business insurable interest

Back 6

take out insurance on the life of a key employee

Front 7

A spouse can take out insurance out on the other without their knowledge?

Back 7

it's impossible to take out insurance because the insured party would have to sign for it.

Front 8

When must insurable interest exist?

Back 8

at the time the insurance policy is purchased and at the time a loss occurs.

Front 9

Coli Policy (Corporate Owned Life Insurance)

Back 9

that employers take out on employees that benefit not the employee but the company.

Front 10

an employers take out this type of policy on employees that benefit not the employee but the company. It doesnt require employee approval

Back 10

Coli Policy

Front 11

Dead Peasant Policy

Back 11

policies on lower level employees, what is happening in the courts right now?

Front 12

Title insurance

Back 12

insurance meant to protect an owner's or a lender's financial interest in real property against loss due to title defects, liens or other matters.

Front 13

Floater insurance

Back 13

policy that covers property that is easily movable and provides additional coverage over what normal insurance policies do not. anything from jewelery to expensive stereo equipment.

Front 14

Malpractice insurance

Back 14

helps protect professional service providing individuals and companies from bearing the full cost of defending against a negligence claim made by a client, and damages awarded in such a civil lawsuit.

Front 15

is the application part of the contract?

Back 15

yes

Front 16

if there are errors on the contract does it void the policy?

Back 16

yes

Front 17

If a person dies before the physical exam can the husband still collect?

Back 17

Must have binder insurance, Must have proof they would have passed the physical exam, And proof they paid the first premium.

Front 18

Are they obligated to return the premium?

Back 18

yes

Front 19

Co insurance at what level does it require to receive the face value of the policy

Back 19

80 percent

Front 20

Incontestability clauses

Back 20

clause in a life or health insurance policy that states that after policy has been in force for specified length of time (usuallly 2-3 years) the insurer cannot contest statements made in the policyholder's application

Front 21

Antilapse clauses

Back 21

policy will not automatically lapse if no payment is made on the date due. Grace period of 30 or 31 days to pay before policy is cancelled

Front 22

Rights to cancel for insured and insurer

Back 22

Insured can cancel at any time. Insurer can cancel under certain circumstances but must give advance written notice

Front 23

o Unclear if policy has been issued- how is this settled

Back 23

Court presumes that the policy is in effect unless the company can show otherwise.

Front 24

Defenses against payment

Back 24

fraud or misrepresentation, lack of an insurable interest, illegal actions of the insured

Front 25

Person takes out life insurance and indicates age wrong, is that within the rights of the company to not pay?

Back 25

no

Front 26

If a person fails to reveal a heart condition under what rights can the insurer refuse to pay?

Back 26

only if it has been in effect for less than two years (incontestability clause)

Front 27

Insurance bought for home and you burn it down how much can you collect?

Back 27

none

Front 28

Devise

Back 28

a gift of real property by will, or the act of giving real property by will

Front 29

Bequest

Back 29

gift of personal property by will

Front 30

Legacy

Back 30

gift of personal property under a will

Front 31

Administrator

Back 31

one who is appointed by a court to administer a person's estate if the decedent died without a valid will or if the executor named in the will cannot serve

Front 32

Residuum

Back 32

the assets of the estate of a person who has died with a will which are left after all specific gifts have been made

Front 33

Testamentary capacity requirements

Back 33

must be 18, know the nature of the act of making a will, comprehend and remember the "natural objects of thier bounty" (kids/family), know the nature and extent of property, understand distribution of assets called for by the will

Front 34

How many witnesses are required to execute an enforceable will?

Back 34

two, sometimes three

Front 35

Oral wills, under what circumstances will they be enforceable?

Back 35

not permitted in most states. only valid if made during last illness of the testator (deathbed will)

Front 36

If a person destroys your will can they revoke it by destroying it?

Back 36

only in your presence and with your consent

Front 37

Do you have to register the revocation of your will at the county office?

Back 37

no?

Front 38

What is the purpose of probate procedures?

Back 38

proving and validating a will and settling all matters pertaining to an estate

Front 39

Poor man’s will

Back 39

joint accounts are often referred to as the "poor man's will" because they allow an individual to give assets to another upon death without resort to the probate process

Front 40

Intestacy

Back 40

if you were to die without a will

Front 41

If you don’t have a will and die and have a grandson and a sister, what kind of heirs are they?

Back 41

lineal descendants

Front 42

Intervivos

Back 42

trust created by grantor during their lifetime

Front 43

Testamentary heirs

Back 43

person who is constituted heir by testament executed in the form prescribed by law

Front 44

Lineal descendants

Back 44

grandchildren, brothers and sisters, sometimes parents

Front 45

How are funds split?

Back 45

per stirpes: heir takes the share that their deceased parent would have been entitled to, per capita: all heirs in certain class inherit equally

Front 46

If your children die before you, and one has a child and the other has many children, who gets what when you die?

Back 46

per stirpes or per capita

Front 47

Intervivos trusts

Back 47

trust created by grantor during their lifetime (aka living trust)

Front 48

Testamentary Trusts

Back 48

created by will and comes into existence on the settlor's death

Front 49

Resulting trust

Back 49

arises from the conduct of the parties. when one party holds the actual legal title to another's property only for that other person's benefit

Front 50

Charitable trust

Back 50

property held by the trustee must be used for a charitable purpose

Front 51

Constructive trust

Back 51

equitable trust that is imposed in the interests of fairness and justice when someone wrongfully holds legal title to property

Front 52

Spend thrift trust

Back 52

protects beneficiary from spending all the funds to which they are entitled

Front 53

Toten trust

Back 53

created when a person deposits funds in their own name for a specific beneficiary, who will receive the funds of the depositor's death

Front 54

When does a trust become effective?

Back 54

when person dies unless living trust

Front 55

Can the grantor become or be the trustee?

Back 55

only in a revocable living trust