zYoong+Woo

__**Final Project**__ Insurance - agreement under which one party will pay to offset a loss to another Indemnify - to make good a loss Insurer - party who will indemnify if loss occurs Insured - party protected or covered if the loss occurred. Beneficiary - party for whose benefit a trust is managed Policy - written contract of insurance Face Value - stated maximum amount that could be paid under a policy Premium - consideration for insurance contract Risk - potential loss that is insured against Insurable Interest - potential to sustain loss if the insured property is damaged or destroyed or if the insured person is injured or dies Property Insurance - insurance that covers for losses resulting from perils such as fire, theft, or windstorm Casualty Insurance - insurance that covers for losses due to accident, chance, or negligence Exclusions - exceptions to insurance coverage Fire Insurance - property insurance that covers for loss or damage due to fire and usually smoke as well Endorsements - modifications made to the standard fire policy to satisfy and insured's needs Coinsurance - clause in a fire policy that requires the insured to maintain coverage equal to a certain percentage of the total current value of the insured property Inland Marine Insurance - insurance that covers against loss or damage to personal property where the property is lodcated or while it is being transported by any means other than by sea Liability Insurance - insurance that covers personal injury or property damage claims for which the insured is legally responsible Automobile Insurance - insurance providing liability and other coverages for the operation of a motor vehicle Collision Insurance - automobile insurance that protects against upset and direct and accidental damage due to colliding with another object Comprehensive Insurance - insurance that covers against all damage to the insured's car except that caused by collision or upset No-fault Insurance - insurance that requires that the parties to an automobile accident be covered by their own insurance company, regardless of who is at fault Life Insurance - insurance that pays to a named beneficiary or the deceased's estate upon the death of the insured Social Insurance - government-sponsored insurance protecting against financial problems related to retirement, survivorship, disability, and declining health.
 * Chapter 23 Vocabulary.**

Administrator/Administratrix - court-appointed representative for a decedent (male/female) Charitable trust - created for the fulfillment of an altruistic purpose Constructive trust - legal presumption that everyone has knowledge of facts on public file Decedent - person who dies Escheat - reversion of property to the state Estate - bundle of ownership rights in, and powers over, realty Executor/executrix - intestate's personal representative appointed to settle the estate (male/female) Express trust - trust in which the terms are explicitly stated by the settler Holographic will - will written and signed entirely by the maker Inter vivos trust - trust created during the lifetime of the settlor Interstate - to die without a will Nuncupative will - orally made will Private trust - trust created for private reasons Resulting trust - implied trust formed to hold property for its original owner Settlor - creator of a trust Spendthrift trust - trust created to protect the beneficiary's interest in a property from the beneficiary's creditors Testamentary capacity - testator must know the kind and extent of property involved, persons who stand to benefit, and that he or she is making an arrangement to dispose of his or her property after death Testamentary intent - clear intention to make a will Testamentary trust - trust created after the death of a settlor in accordance with directions in the person's will Testate - to die with a valid will Testator/testatrix - maker of a will (male/female) Trust - legal vehicle used to transfer the immediate control of property to another party Trustee - legal entity having title to the property named in a trust Will - legal expression by which a person directs how his or her property is to be distribued after death
 * Chapter 24 Vocabulary.**

1. The party who agrees to indemnify another is termed the (a) insurer 2. The face amount of a policy is always paid whenever the covered loss is sustained. False 3. The risk of any and all financial losses can be covered by insurance. True 4. Which type of insurance covers loss of or damage to property while it is being transported (a) marine 5. The beneficiary's insurable interest must exist at the time of loss for a life insurance policy to pay. False 6. An insurable interest in property must exist at the time of loss for a fire insurance policy to pay. True 7. Automobile insurance may be written to indemnify for both casualty and property losses. False 8. Depreciation is a common exclusion to property insurance coverage. True 9. Which of the following is not covered in the standard fire policy? (c) losses due to inept attorneys 10. A friendly fire that becomes uncontrollable is considered a hostile fire for fire insurance purposes. 11. A(n) __omnibus__ clause extends auto insurance coverage to members of the insured's household. 12. Which of the following indemnifies against the cost of medical care neccessary to regain physical well-being after an illness? (c) health insurance. 13. Unemployment insurance is provided directly by the Social Security Act. True 14. A(n) __incontestability__ clause prohibits an insurer from refusing to perform due to fraud or misrepresentation after a policy has been in effect for one or two years. 15. Double-indemnity coverage requires the insurer to pay half the face amount of the policy if the death of the isnured is accidental. False 16. Which of the following types of social insurance provides health insurance and hospital insurance for people age 65 and older? (d) Medicare
 * Chapter 23 Legal Concepts**

1. Those who die without a valid will are legally termed to have died interstate. True 2. If there are no inheritors of the decedent's estate, the property __escheats__ to the state. 3. The legal term for anoral will is a(n) __nuncupative__ will. 4. The insertion of a codicil on a will does not have to be witnessed. False. 5. The typical time for all creditors of the estate to file a claim against it is (b) six months 6. A trust terminates at the death of the settlor. False 7. A trust terminates with the death of the trustee. True 8. A resulting trust may be created due to the death of a trust's beneficiary. True 9. A trust created by the will of a deceased settlor is known as a(n) (a) inter vivos trust 10. A charitable trust is created for a(n) __fulfillment of an altruistic__ purpose. 11. In a spendthrift trust the beneficiary's creditors can utilize the trust's property to satisfy the debts owed them by the beneficiary. False 12. Is a resulting trust an express trust? No 13. The two types of implied trusts are the private trust and the spendthrift trust. False 14. The trustee has a responsibility requiring the highest degree of care and loyalty to the beneficiary. This is referred to as a (b) legal caretaker's duty.
 * Chapter 24 Legal Concepts**

1. Although insurance is an excellent way to protect against possible loss, certain risks such as that of doing business cannot be covered. 2. Losses covered by a fire insurance policy will be indemnified only upon a showing that they were most likely caused by a hostile fire. 3. A property or casualty insurance policy can be assigned only with the consent of the insurer. The right to recover from an insurer a loss that has laredy been sustained may be assigned by the insured without consent of the insurer. 4. Coinsurance requires the insured to keep the face value of the policy equal to a certain percentage (usually 80 percent) of the current value of the insured property. 5. The basic purpose of automobile insurance is to provide coverage against liability. It can also provide medical payments coverage, collision and comprehensive coverage, and unsinured and underinsured coverage. 6. No-fault insurance, which indemnifies the insured for various losses sustained in an automobile accident regardless of who had legal responsibility for the accident, is now requried by some states. 7. Federal disability insurance provides monthly benefits for a worker and dependents if a severe, long-lasting disability is suffered. 8. Social security retirement insurance provides monthly benefits for a worker and ependents when the worker retires at age 62 or later.
 * Chapter 23 Concepts in Brief**

1. To make good a loss. Indeminify 2. Party who will indemnify if loss occurs. Insurer 3. Stated maximum amount that can be paid under a policy. Face Value 4. Consideration for a contract of insurance. Premium 5. The potential loss that has been insured against. Risk 6. Potential to sustain loss due to the coverd risk. Insurable Interest 7. Indemnifies for loss from personal negligence, chance, and accident. Casualty Insurance 8. Exceptions to insurance coverage. Exclusions 9. Modification to the standard fire policy made to satisfy individual needs. Endorsements 10. Requires that, in the even of loss, insureds be indemnified by their own insurance companies. No-fault Insurance 11. Clause in a fire policy that requires the insured to maintain coverage equal to a certain percentage of the total current valu of the insured property. Coinsurance 12. Insurance to cover personal injury or property damage claims for which the insured is legally responsible. Liability Insurance
 * Chapter 23 Legal Vocabulary**

1. The basic requirements for a valid, formal will are testamentary intent and capacity, a general knowledge of what is being done, and a signed writing with witnesses. 2. A will can be revoked or changed at any time prior to the testator's death. 3. Creditors' rights against the estate and the rights of a surviving spouse to a share of the estate may not be defeated by a will that attempts to give the property to others. 4. in essence, a trust can be created to accomplish any conceivable legal prupose. 5. The beneficiary can have no control whatsoever in a spendthrift trust arrangement. 6. A resulting trust is formed when the entity intended to receive the benefit of an express trust cannot do so. The resulting trust is intended to hold the property for its original owner. Note that it differs from a constructive trust, which is imposed on someone wrongfully holding the property of another but which is also imposed to benefit the true owner.
 * Chapter 24 Concepts in Brieft**

1. A deceased person. Decedent 2. To die without a will. Interstate 3. Interstate's personal representative (female) appointed to settle the estate. Executrix 4. Property of the deceased. Estate 5. To die with a valid will. Testate 6. Male maker of a will. Testator/testatrix 7. Orally made will. Nuncupative will 8. Creator of a trust. Settlor 9. Trust created for private reasons. Private trust 10. Court appointed representative for a decedent. Administrator/Administratrix 11. Trust created for the fulfillment of an altruistic purpose. Charitable trust 12. Trust in which the terms are explicitly stated by the settler. Express trust 13. Will written and signed entirely by the maker. Holographic will 14. Legal vehicle used to transfer the immediate control of property to another party. Trust 15. Trust created during the lifetime of the settlor. Inter vivos trust.
 * Chapter 24 Legal Vocabulary**

1. Did the decident have testamentary capacity? No because he was going through a lot of things and was drinking heavily. 2. Did the decedent act of his own free will in cutting his son and the son's family or was Inga's influence too great? Inga's influence was too great because the decedent would do anything for her since he was having problems. 3. How should the court rule this case? The court should rule this case in favor of John Morse, the plaintiff.
 * Chapter 24 Case for Legal Thinking**

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Hiibel v. Sixth Judicial District Court of Nevada 1. What was the constitutional issue surrounding the case? In Hiibel v. Sixth Judicial District Court of Nevada, the Supreme Court is to address the question of whether an individual has the right to refuse to identify himself to a law enforcement officer before arrest. This case implicates a invasion of privacy issues such as Fourth Amendment protections against unreasonable government search and seizure, the right to being anonymous, and law enforcement accumulation and use of personal information. 2. List the courts (in sequential order) that heard the case. To what court did the Supreme Court issue a writ of certiorari? Nevada District Court, Supreme Court of Nevada, and the United States Supreme Court. The Supreme Court issued a writ of certiorari to the Nevada District Court. 3. What was the outcome of the Supreme Court's decision? The Supreme Court issued its opinion on June 21, 2004, holding that Neveda Revised Staute. is constitutional under both the Fourth and Fifth Amendments. 4. Were any of the Justices in dissent over the majority opinion? If so, what was their argument? 2 of the Justices were in dissent over the majority opinion (Justice Breyer and Stevens). Their argument was that the police have the right to request citizens to answer voluntarily questions concerning unsolved crimes but cannot compel them to answer.

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