Business and Personal LawChapter 21:
Insurance and Estate PlanningSelf Check AnswersSection 21.1 - to protect individuals and businesses against losses by spreading the risks of loss over a large number of people
- Policyholder buys insurance; beneficiary named in policy receives benefits in the event of a loss.
- Straight life: requires payment of premiums throughout the insured's life and pays its face value to the beneficiary. Term: issued for a particular period, usually five or ten years.
Section 21.2 - any person 18 years of age or older with both testamentary capacity and intent
- by burning, tearing, canceling, or obliterating the document with the intent of revoking it; by executing a new will; and by changing marital status
- a person who holds title to the property for another's benefit and should exercise a high degree of care in investing the trust funds
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