Kent Enters into a Contract with Life Insurance Company for a Policy

question 24

Multiple Choice

Kent enters into a contract with Life Insurance Company for a policy that designates Mia as the beneficiary. Kent reserves the right to change the designated beneficiary. Mia's rights under the policy are

• A) not affected by the reservation.
• B) subject to any change that Kent makes.
• C) subject to the first-in-time rule.
• D) terminated by the reservation.

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Definitions:

Fraudulent Indorsements

Fraudulent indorsements occur when a person illegally signs a document on behalf of another without permission or authority, often to misappropriate funds.

UCC

The Uniform Commercial Code (UCC) is a comprehensive set of laws governing commercial transactions between U.S. states, including sales, leases, negotiable instruments, and secured transactions.

Valuable Necklace

A piece of adornment, often made of precious metals and stones, considered to have significant monetary worth.

Imposter Rule

A legal principle that protects the drawer of a negotiable instrument from being held liable to an impostor or in cases of fraud, provided certain conditions are met.