Personal Finance Chapter 6

If someone dies without a will, who handles the distribution of the person’s estate? The state
Experts recommend that you only use insurance if the item is worth more than $100,000. False
Negligence is typically thought of as a failure to take reasonable actions to prevent injury or damage. True
A simple will leaves your possessions to whom? A spouse
A guardian does which of the following? Agrees to care for a person’s children in the event of the person’s death
What is a failure to take reasonable actions to prevent injury or damage? Negligence
With a contract, consideration is something of value offered by one party in exchange for something of value from the second party. True
When you want to add coverage for something not included in an insurance policy, what would you add to your policy? A rider
In a contract, each party has what? An obligation or responsibility
Contracts are really only used for business; most people do not have contracts for their personal finances. False
Handwritten wills are also known as which of the following? Holographic Wills
If someone dies without a will, a situation known as intestate, the state will step in to handle the distribution of the estate, even if it is not what you may have wanted. True
The specific protection that the insurer provides to the policy holder is known as which of the following? Coverage
Only individuals over the age of 60 need to create an estate plan. False
What is NOT true about contracts? A contract can be enforced even if the agreement contains an illegal activity

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