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Question 1: The Bubba Insurance Company is not incorporated. It consists of Bubba and his two brothers
as general
partners, who maintain an active securities account in the name of the company. If one of the
partners
should suddenly die, what course of actions should be undertaken by the registered representative at
the
brokerage?
A. freeze the account from further activity until a death certificate and new partnership agreement
are
furnished to the brokerage
B. no special action is required because the death of a single partner does not terminate the
partnership
agreement
C. distribute the assets in the account to the surviving partners
D. execute sell orders but do not accept buy orders or distribute assets from the account until a new
partnership agreement is provided to the brokerage
Correct Answer: D
Explanation: execute sell orders but do not accept buy orders or distribute assets from the account
until a
new partnership agreement is provided to the brokerage. Sell orders may be accepted but not buy
orders
or distributions.
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