Which of the following statements concerning property law is correct?

• A. The law of property is divided into the two major subdivisions of real property and personal property.
• B. Personal property is precluded from ever becoming real property.
• C. An insurance policy is classified as tangible personal property.
• D. Tangible personal property is sometimes referred to in the law as a chose in action.

Answer: (A)

The main idea here is how property is categorized in property law. Property is typically divided into real property (land and things permanently attached to land) and personal property (everything else). Personal property itself includes both tangible items, like furniture or vehicles, and intangible rights, like contracts or the right to sue (often called a chose in action). An insurance policy is a contract, so it’s an intangible personal property interest, not tangible property. Personal property can become real property when it’s attached to land in a way that makes it a fixture (for example, a stove installed in a house). That shows why the statement about the property law division is correct. The other statements misstate aspects of classification: fixtures can convert personal property into real property, insurance policies are not tangible property, and a chose in action is an intangible right, not tangible property.