Test Bank For Business Law Today, Standard Edition, Text & Summarized Cases 14th Edition By Roger LeRoy Miller

Test Bank for Business Law
Today, Standard Edition,
Text & Summarized Cases
14th Edition By Roger LeRoy
Miller (All Chapters 1-36,
100% Original Verified, A+
Grade)
All Chapters Arranged
Reverse: 36-1
This is The Original Test Bank
for 14th Edition, All other
Files in The Market are
Fake/Old/Wrong.

,Name Clas Dat
: s: e:

Chapter 36 - Insurance, Wills, and Trusts
True / False

1. Insurance is a contract in which the insurer promises to reimburse the insured, or a beneficiary in the event of a loss.
a. True
b. Fals
e
ANSWER: True

2. Risk can be described as a prediction concerning potential loss based on known and unknown factors.
a. True
b. Fals
e
ANSWER: True

3. Insurance contracts are usually obtained through an agent, who works as an independent contractor.
a. True
b. Fals
e
ANSWER: Fals
e

4. Insurance is an arrangement for transferring and allocating risk.
a. True
b. Fals
e
ANSWER: True

5. Because an insurance agent is an agent of an applicant for insurance, not the insurance company, the agent owes
fiduciary duties to the applicant.
a. True
b. Fals
e
ANSWER: Fals
e

6. An insurable interest in property need NOT exist when a policy insuring against its damage or loss is purchased.
a. True
b. Fals
e
ANSWER: True

7. Life insurance requires that an insurable interest in the continued life of the insured exists at the time a policy is
obtained.
a. True
b. Fals

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,Name Clas Dat
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Chapter 36 - Insurance, Wills, and Trusts
e
ANSWER: True

8. Key person insurance is insurance purchased by a family member for someone who is a key member of their family.
a. True
b. Fals
e
ANSWER: Fals
e

9. Customarily, an insurance company offers to insure individuals and businesses by advertising for applicants, who can
either accept or reject the offer.
a. True
b. Fals
e
ANSWER: Fals
e

10. Consideration may be given for an insurance contract but is not required.
a. True
b. Fals
e
ANSWER: Fals
e

11. The date that an insurance policy becomes effective is always the date the policy was signed.
a. True
b. Fals
e
ANSWER: Fals
e

12. A binder in an insurance policy is the amount that is paid for the policy.
a. True
b. Fals
e
ANSWER: Fals
e

13. An insured must insure their property for the full amount for it to be effective when purchasing fire insurance.
a. True
b. Fals
e
ANSWER: Fals
e

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, Name Clas Dat
: s: e:

Chapter 36 - Insurance, Wills, and Trusts
14. Courts interpret the words used in an insurance policy as if most people have the special training necessary to
understand the intricate terminology.
a. True
b. Fals
e
ANSWER: Fals
e

15. An insurer can cancel a policy because the insured has appeared as a witness in a case brought against the company.
a. True
b. Fals
e
ANSWER: Fals
e

16. Once an insurer has accepted a risk, and an event occurs that gives rise to a claim, the insurer has a duty to investigate
in order to determine the facts.
a. True
b. Fals
e
ANSWER: True

17. An executor is a personal representative appointed by the court, if the decedent had no will.
a. True
b. Fals
e
ANSWER: Fals
e

18. A gift of real property in a will is called a bequest.
a. True
b. Fals
e
ANSWER: Fals
e

19. A valid will is one that represents the maker’s intent to transfer and distribute their property.
a. True
b. Fals
e
ANSWER: True

20. For a will to be valid, the testator’s signature must appear on it, generally at the end.
a. True
b. Fals

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