Quiz 44: Planning for the Future: Estates and Insurance

Business

Even though Ann's father originally paid for the violin, he gave it to Ann as a gift; she even went to physically assume ownership of the violin at the original owner's location. As stated in the problem, Ann had absolute ownership of the violin for twenty years. Bailment is the rightful possession of goods by someone who is not the owner. The one who presents the items is the bailor and the one in possession is the bailee. In the situation outlined in the book, Ann Rylands is the bailor and her mother is the bailee, since Ann entrusted her prized violin to her mother for safekeeping and her mother accepted. As the bailee, her mother is obligated to return the violin to the bailor, Ann, when she requests. Ann is still the owner of the violin.

Even though Ann's father originally paid for the violin, he gave it to Ann as a gift; she even went to physically assume ownership of the violin at the original owner's location. As stated in the problem, Ann had absolute ownership of the violin for twenty years. Bailment is the rightful possession of goods by someone who is not the owner. The one who presents the items is the bailor and the one in possession is the bailee. In the situation outlined in the book, Ann Rylands is the bailor and her mother is the bailee, since Ann entrusted her prized violin to her mother for safekeeping and her mother accepted. As the bailee, her mother is obligated to return the violin to the bailor, Ann, when she requests. Ann is still the owner of the violin.

DN and CN bought life insurance from the PR insurance company. The provision within the policy stated that, premium need not be paid under insured party being disabled by any means. Later, when CN became disabled, the insurance company did not claim for the rest of the premiums as per provision. Some years later, the company asked CN to convert his term life insurance to whole life, and asked him to pay only for the new policy for a six-month waiting period. Waiver of premium provision was also included under this policy. This led CN to pay premiums at the time he could not afford, as the provision included the clause that CN has to pay premium for the waiting period of six months. Yes, CN can claim against PR insurance company. The policies should be under the control of the branch managers. Sales managers have no right to convert term insurance into whole life policies. Waiver of premiums should be included and excluded only under the provision of branch manager. Here, no agent can make a change in contract. So, the PR insurance company does not hold any ethical obligation to their customers, as it is the branch manager's responsibility to monitor the actions of their sales managers.

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