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Business Law - Final Review #5

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

Those who die WITH a valid will are said to have died testate.

a)

True

b)

False

2.

A will is a legal expression directing how ones property will be distributed after death.

a)

True

b)

False

3.

Once made, a will cannot be changed or canceled.

a)

True

b)

False

4.

A codicil is an amendment to a will.

a)

True

b)

False

5.

The creator of a trust is known as the trustee.

a)

True

b)

False

6.

All wills MUST be witnessed.

a)

True

b)

False

7.

A will only takes effect:

a)

upon the death of the maker

b)

upon the witnessed signing of the will

c)

upon the official recording of the will

d)

upon the 1-year anniversary of the death of the maker

8.

A trust created during the lifetime of the settlor/grantor is:

a)

a charitable trust

b)

a spendthrift trust

c)

an inter vivos trust

d)

a testamentary trust

9.

A trust created after the death of the settlor in accordance with directions in his/her will is

a)

an express trust

b)

an implied trust

c)

a testamentary trust

d)

an inter vivos trust

10.

Another name for an oral will:

a)

nuncupative will

b)

holographic will

c)

codicil

d)

trust

11.

A court-appointed personal representative overseeing an estate is called a/an:

a)

administrator

b)

executor

c)

testator

d)

trustee

12.

A type of insurance that covers damage to your vehicle from a fire or flood is called:

a)

liability insurance

b)

collision insurance

c)

comprehensive insurance

d)

physical insurance

13.

The least expensive type of life insurance is:

a)

straight life

b)

whole life

c)

term

d)

limited payment

14.

The mental ability to enter into a will is known as:

a)

testamentary intent

b)

testamentary capacity

15.

The amount of money an insured pays for insurance.

a)

premium

b)

policy limit

c)

credit line

d)

credit limit

16.

Life insurance issued for a particular time period.

a)

whole life

b)

straight life

c)

ordinary life

d)

term

17.

The intention that the document is meant to be a last will and testament.

a)

testamentary capacity

b)

testamentary intent

18.

The person named in a life insurance policy to receive the proceeds.

a)

executor

b)

administrator

c)

testator

d)

beneficiary

19.

The person designated in the will to carry out its terms.

a)

administrator

b)

grantor

c)

executor

d)

grantee

20.

Life insinsurance that requires the payment of premiums until the face value is reached or the insured dies.

a)

straight life

b)

whole life

c)

limited life

d)

annuity