zEmanuel+Juarez

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Ch 23 Vocabulary

 * 1) Insurance- a contractual arrangement that protects against loss
 * 2) Indemnify- make good, the loss to the suffering party
 * 3) Insurer- th party who agrees to indemnify
 * 4) Insured- the party covered or protected
 * 5) Beneficiary- the recipient of the amount to be paid
 * 6) Policy- the written contract of insurance
 * 7) Face Value- the stated maximum amount that could be paid if the harm a person is insured against occurs
 * 8) Premium- the consideration for a contract of insurance
 * 9) Property Insurance- the general type of insurance intended to indemnify for harm to the insured's personal or real property brought about by perils such as fire, theft, and windstorm
 * 10) Casualty Insurance- the type of insurance that indemnifies for losses resulting from accident, chance, or negligence
 * 11) Exclusions-certain exceptions to covergae relieve the insurance company from paying
 * 12) Fire Insurance- the type of property insurance that covers the direct loss to property resulting from fire, lightning strike, or removal from premises endangered by fire
 * 13) Endorsements- (also known as riders) modifications made to the standard fire policy to satisfy an insured's needs
 * 14) Coinsurance- a clause in a fire insurance policy that requires the insured to maintain coverage equal to a certain percentage of the total current value of the insured property
 * 15) Inland Marine Insurance- insurance that covers against loss or damage to personal property where the property is located or while it is being transported by any means other than by sea
 * 16) Liability Insurance- a type of casualty insurance that indemnifies against personal injury or property damage claims for which the insured is legally responsible
 * 17) Automobile Insurance- insurance providing liability and other coverages for the operation of amotor vehicle
 * 18) Collisin Insurance- protects against direct and accidental damage due to (a) colliding with another object, such as a tree or bridge abutment, and (b) upset, such as the overturn suffered by Williams in //What's Your Veredict?// Collision coverage would provide Williams compensation for the loss of his vehicle in the accident
 * 19) Comprehensive Insurance- indemnifies against all damage to the insured's car //except// that caused by collision or upset
 * 20) No-fault Insurance- requires that parties to an automobile accident be indemnified by their own insurance company regardless of who is at fault
 * 21) Social Insurance- indemnifies persons, at least partially, from the harsh financial consequences of unemployment, disability, death, or forced retirement

//Ch. 23 ﻿Concepts in Brief//
 * 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 mos t likely caused by a hostile fire.
 * 3) A property or casualty insurane policy can be assigned only with the consent of the insurer. The right to recover from an insurer a loss that has already 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 medical payments coverage, collision and coprehensive coverage, and uninsured 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 required 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 dependents whent eh worker retires at age 62 or later.

//Ch. 23 "Think about Legal Concepts"//
 * 1) The face amount of a policy is always paid whenever the covered loss is sustained (False)
 * 2) The risk of any and all financial losses can be covered by insurance (False)
 * 3) Which type of insurance covers loss of or damage to property while it is being transported? -Marine
 * 4) The beneficiary's insurable interest must exist at the time of loss for a life insurance policy to pay (True)
 * 5) An insurable interest in property must exist at the time of loss for a fire insurance policy to pay (True)
 * 6) Automobile insurance may be written to indemnify for both casualty and property losses (False)
 * 7) Depreciation is a common exclusion to property insurance coverage (True)
 * 8) Which of the following is not covered in the standard fire policy? -Losses due to inept attorneys
 * 9) A friendly fire that becomes uncontrollable is considered a hostile fire for fire insurance purposes (False)
 * 10) A(n) Omnibus clause extends auto insurance covergae to memebers of the insured's household
 * 11) Which of the following indemnifies against the cost of medicl care necessary to regain physical well-being after an illness? -Health Insurance
 * 12) Unemployment insurance is provided directly by the Social Security Act. (False)
 * 13) 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.
 * 14) Double-indemnity coverage requires the insurer to pay half the face amount of the policy if the death of the insured is accidental (False)
 * 15) Which of the following types of social insurance provides health insurance and hospital insurance for people age 65 and older? -Retirement Insurance

Ch. 24 Vocabulary.

 * 1) Decendent- the person who dies
 * 2) Intestate- to die without a will
 * 3) Administrator- (if male) a personal representative
 * 4) Administratrix- (if female) a personal representative
 * 5) Testate- to die leaving a valid will
 * 6) Will- a legal expression, usually in writing, by which a person directs how her or his property is to be distributed after death
 * 7) Testator- (if male) the maker of the will
 * 8) Testatrix- (if female) the maker of the will
 * 9) Executor- (if male) a personal representative for the will maker
 * 10) Executrix- (if female) a personal representative for the will maker
 * 11) Testementary Intent- the clear intetion to make a will
 * 12) Testamentary Capacity- means the maker must know, at least in a general way, the kind and extent of the property involved, the persons who stand to benefit, and that he or she is making arrangements to dispose of his or her property after death
 * 13) Codicil, a formal, written, and witnessed amendment
 * 14) Holographic Will- one that was written entirely the decendent's own hand and signed by him or her
 * 15) Nuncupative Will- oraly made will
 * 16) Escheats- reverts to the state
 * 17) Trust- created when the transferee of the property is a separate entity under law
 * 18) Trustee- the legal entity that has the title to the subject property
 * 19) Settlor- the creator of a trust
 * 20) Beneficiary- the party for who's benefitthe trust is managedi n accordance with the settlor's wishes
 * 21) //Inter Vivos Trust//- a trust created during the lifetime of the settlor
 * 22) Testamentary Trust- a trust created after the death of the settlor in accordance with directions in her or his will
 * 23) Charitable Trust- a trust created for the fulfillment of an altruistic purpose
 * 24) Private Trust- alternatively, a trust created for a private purpose
 * 25) Spendthrift trust- a type of private trust
 * 26) Express Trusts- trust in which the terms are explicitly stated by the settler
 * 27) Resulting Trust- implied trust formed to hold property for its original owner
 * 28) Constructive Trust- created to require a person holding property to transfer it to another because retention would be a wrongful and unjust enrichment of the holder

Ch. 24 "Think about Legal Concepts"

 * 1) Those who die without a valid will are legally termed to have died intestate. True
 * 2) If there are no inheritors of the decendent's estaet, the property __escheats__ to the state.
 * 3) The legal term for an oral will is a nuncupative will.
 * 4) The insertion of a codicil on a will does not have to be witnessed.
 * 5) The typical time for all creditors of the estate to file a claim against it is
 * 6) A trust terminates at the death of the settlor. True
 * 7) A trust terminates with the death of the trustee. False
 * 8) A resulting trust may be created due to death of a trust's beneficiary. False
 * 9) A charitable trust is created for a(n) __private__ purpose.
 * 10) In a spendthrift trust hte beneficiary's creditors can utilize the trust's proerty to satisfy the debts owed to them by the beneficiary. False
 * 11) Is a resulting trust an expres trust? -No
 * 12) The two types of implied trusts are the private trust and the spendthrift trust.
 * 13) The trustee has a responsibility requiring the highest degree of care and loyalty to the benficiary. This is referred to as a