Question 1

To prevent the use of the insurance policy for wagering purposes,the person who is to be indemnified under the contract must have:

Accepted Answer

A)   good faith.
B)   an insurable interest.
C)   a binder.
D)   a coinsurance clause.

Question 2

A warehouse receipt:

Accepted Answer

A)   is not a document of title.
B)   is a receipt issued by a person engaged in the business of storing goods for hire.
C)   grants a lien enabling a warehouser to sell goods only at a public sale.
D)   All of these.

Question 3

A straight bill of lading under which goods are deliverable only to a person named in the bill may be transferred by assignment or negotiation.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is tangible real property?

Accepted Answer

A)   Corn harvested and stored in a grain bin
B)   The mortgage on an office building
C)   A copyright
D)   The freight elevator in an office building

Question 5

Mark wants to give Susan his car.He can effectively "deliver" it by:

Accepted Answer

A)   giving Susan the keys.
B)   giving her a written statement that he plans to give the car to her.
C)   letting her drive it for a period of time.
D)   telling his wife that he wants to give the car to Susan.

Question 6

An insured holds a $32,000 fire insurance policy on a building which is valued at $40,000,and on which there is an 80% co-insurance clause.If the building is totally destroyed by fire,the policyholder will receive:

Accepted Answer

A)   $40,000.
B)   $32,000.
C)   $30,000.
D)   $25,600.

Question 7

Mixing identical goods from different owners is:

Accepted Answer

A)   confusion.
B)   accession.
C)   possession.
D)   gift.

Question 8

Which of the following is not a function of a bill of lading?

Accepted Answer

A)   It serves as a receipt for goods.
B)   It serves as evidence that the goods specified in the bill of lading are stored in the insured building of the issuer.
C)   It is evidence of the contract of carriage.
D)   It serves as a document of title.

Question 9

Which of the following is characteristic of a bailment?

Accepted Answer

A)   There is a separation of ownership and possession
B)   A bailment must be a contract
C)   It must last for an indefinite time
D)   It must be for the benefit of both parties.

Question 10

A carrier or warehouser who receives goods from a thief and later delivers them to a person to whom the thief ordered them to be delivered is liable to the true owner of the goods.

Accepted Answer

A) True 
 B)False

Question 11

Property insurance policies are frequently written for periods of at least five years.

Accepted Answer

A) True 
 B)False

Question 12

Sales of copyrights and patents are governed by:

Accepted Answer

A)   the UCC.
B)   common law.
C)   federal statute.
D)   real estate law.

Question 13

Explain the difference between lost,mislaid,and abandoned property and who has rights to it.

Accepted Answer

Lost property is property that was unint...

Question 14

The anthropology department of Towers University is doing an excavation on property that belongs to Farmer Brown.If in the process of excavation the university finds some valuable lost items,they will belong to Farmer Brown and not to the university.

Accepted Answer

A) True 
 B)False

Question 15

The Swails have an 80 percent co-insurance policy on their $100,000 home.Explain what this means.If they have an 80 percent co-insurance clause,a policy for $80,000,and suffer a covered loss of $40,000,how much will the insurer pay? If they have an 80 percent co-insurance clause,a $60,000 policy,and suffer a loss of 25% of their property,how much will the insurer pay?

Accepted Answer

Co-insurance is a common arrangement in ...

Question 16

A document of title symbolizes ownership of the goods it describes;its transfer transfers the ownership or control of the goods without necessitating the physical transfer of the goods themselves.

Accepted Answer

A) True 
 B)False

Question 17

A friendly fire is one that is contained in its intended place such as a fireplace,stove,or barbecue grill.

Accepted Answer

A) True 
 B)False

Question 18

An example of a bailment for the bailor's sole benefit is when Sherri,without compensation,lends her Cappuccino maker to Ed for Ed's party.

Accepted Answer

A) True 
 B)False

Question 19

Temporary insurance coverage prior to the issuance of the actual policy may be obtained by use of a(n) :

Accepted Answer

A)   premium agreement.
B)   coinsurance clause.
C)   option clause.
D)   binder.

Question 20

A common carrier is under a duty to serve the public to the limits of its capacity.

Accepted Answer

A) True 
 B)False

Exam 47: Introduction to Property,property Insurance,bailments,and Documents of Title

A friendly fire is one that is contained in its intended place such as a fireplace,stove,or barbecue grill.

Correct Answer
verified

Which of the following is characteristic of a bailment?

Correct Answer
verified

Mark wants to give Susan his car.He can effectively "deliver" it by:

Correct Answer
verified

An example of a bailment for the bailor's sole benefit is when Sherri,without compensation,lends her Cappuccino maker to Ed for Ed's party.

Correct Answer
verified

Correct Answer
verified
Co-insurance is a common arrangement in ...
View Answer

To prevent the use of the insurance policy for wagering purposes,the person who is to be indemnified under the contract must have:

Correct Answer
verified

Mixing identical goods from different owners is:

Correct Answer
verified

Temporary insurance coverage prior to the issuance of the actual policy may be obtained by use of a(n) :

Correct Answer
verified

A warehouse receipt:

Correct Answer
verified

Property insurance policies are frequently written for periods of at least five years.

Correct Answer
verified

Which of the following is not a function of a bill of lading?

Correct Answer
verified

A straight bill of lading under which goods are deliverable only to a person named in the bill may be transferred by assignment or negotiation.

Correct Answer
verified

An insured holds a $32,000 fire insurance policy on a building which is valued at $40,000,and on which there is an 80% co-insurance clause.If the building is totally destroyed by fire,the policyholder will receive:

Correct Answer
verified

A carrier or warehouser who receives goods from a thief and later delivers them to a person to whom the thief ordered them to be delivered is liable to the true owner of the goods.

Correct Answer
verified

Sales of copyrights and patents are governed by:

Correct Answer
verified

A common carrier is under a duty to serve the public to the limits of its capacity.

Correct Answer
verified

The anthropology department of Towers University is doing an excavation on property that belongs to Farmer Brown.If in the process of excavation the university finds some valuable lost items,they will belong to Farmer Brown and not to the university.

Correct Answer
verified

Which of the following is tangible real property?

Correct Answer
verified

A document of title symbolizes ownership of the goods it describes;its transfer transfers the ownership or control of the goods without necessitating the physical transfer of the goods themselves.

Correct Answer
verified

Explain the difference between lost,mislaid,and abandoned property and who has rights to it.

Correct Answer
verified
Lost property is property that was unint...
View Answer

Exam 47: Introduction to Property,property Insurance,bailments,and Documents of Title

A friendly fire is one that is contained in its intended place such as a fireplace,stove,or barbecue grill.

Correct AnswerverifiedShow Answer

Which of the following is characteristic of a bailment?

Correct AnswerverifiedShow Answer

Mark wants to give Susan his car.He can effectively "deliver" it by:

Correct AnswerverifiedShow Answer

An example of a bailment for the bailor's sole benefit is when Sherri,without compensation,lends her Cappuccino maker to Ed for Ed's party.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedCo-insurance is a common arrangement in ...View AnswerShow Answer

To prevent the use of the insurance policy for wagering purposes,the person who is to be indemnified under the contract must have:

Correct AnswerverifiedShow Answer

Mixing identical goods from different owners is:

Correct AnswerverifiedShow Answer

Temporary insurance coverage prior to the issuance of the actual policy may be obtained by use of a(n) :

Correct AnswerverifiedShow Answer

A warehouse receipt:

Correct AnswerverifiedShow Answer

Property insurance policies are frequently written for periods of at least five years.

Correct AnswerverifiedShow Answer

Which of the following is not a function of a bill of lading?

Correct AnswerverifiedShow Answer

A straight bill of lading under which goods are deliverable only to a person named in the bill may be transferred by assignment or negotiation.

Correct AnswerverifiedShow Answer

An insured holds a $32,000 fire insurance policy on a building which is valued at $40,000,and on which there is an 80% co-insurance clause.If the building is totally destroyed by fire,the policyholder will receive:

Correct AnswerverifiedShow Answer

A carrier or warehouser who receives goods from a thief and later delivers them to a person to whom the thief ordered them to be delivered is liable to the true owner of the goods.

Correct AnswerverifiedShow Answer

Sales of copyrights and patents are governed by:

Correct AnswerverifiedShow Answer

A common carrier is under a duty to serve the public to the limits of its capacity.

Correct AnswerverifiedShow Answer

The anthropology department of Towers University is doing an excavation on property that belongs to Farmer Brown.If in the process of excavation the university finds some valuable lost items,they will belong to Farmer Brown and not to the university.

Correct AnswerverifiedShow Answer

Which of the following is tangible real property?

Correct AnswerverifiedShow Answer

A document of title symbolizes ownership of the goods it describes;its transfer transfers the ownership or control of the goods without necessitating the physical transfer of the goods themselves.

Correct AnswerverifiedShow Answer

Explain the difference between lost,mislaid,and abandoned property and who has rights to it.

Correct AnswerverifiedLost property is property that was unint...View AnswerShow Answer

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Co-insurance is a common arrangement in ...
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Lost property is property that was unint...
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