Series 7 Exam Question 148: Answer and Explanation

Question: 148

Which TWO of the following are TRUE regarding a power of attorney?

I. A durable power of attorney cancels upon mental incompetence or death of the investor

II. A durable power of attorney only cancels upon death of the investor

III. A regular power of attorney cancels upon mental incompetence or death of the investor

IV. A regular power of attorney only cancels upon the death of the investor

• A. I and III
• B. I and IV
• C. II and III
• D. II and IV

Correct Answer: C

Explanation:

C. A durable power of attorney only cancels upon the death of an investor. A regular power of attorney cancels upon the death or mental incompetence of the investor.