Clem Gets a $100 Check as a Gift from Daria

question 6

Multiple Choice

Clem gets a $100 check as a gift from Daria.Clem crudely increases the amount of the check to $1,00-the alteration is obvious-and transfers it to eReady Sets,Inc.,in exchange for a 3D HD TV.eReady deposits the check in its bank account at First Town Bank.HDCs of this check include

• A)Clem,eReady,and First Town Bank.
• B)Clem only.
• C)eReady and First Town Bank only.
• D)none of these parties.

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Definitions:

Insurance Contract

A legally binding agreement between an insurer and the insured, detailing the terms, coverage, premiums, and obligations of both parties.

Insurable Interest

A requirement stating that a person who purchases an insurance policy must have a vested interest in the subject of the insurance.

Life Insurance

A policy that pays a specified sum to beneficiaries upon the insured person's death.

Continued Life

A term often used in estate planning or business continuity planning that refers to an entity or agreement remaining in effect despite changes in membership or ownership.