Insurance, Secured Transactions and Bankruptcy

1.
Tom is
a family farmer with less than $3 million in debt. He wants to know if there
are any chapters in the bankruptcy code specifically geared to debtors such as
him. You would recommend to him Chapter
2.
Charlie
files Chapter 11 bankruptcy. __________ creditors have the right to vote on the
plan.
3.
Tom’s
life insurance has no cash surrender value. It must be
4.
Tom is a consumer
with regular income who’s able to pay more than 25% of his debt over the next
three years but probably can’t pay it all. If he qualifies, the best chapter in
bankruptcy for Tom is chapter
5.
Terry parks his
car outside the restaurant and goes inside to eat. When he returns, his car has
been damaged by vandalism. Terry’s insurance company will pay for the repairs
if Terry has __________ insurance
6. Billy borrowed money from First Bank, and he entered
an agreement listing his scooter as collateral. First Bank took all necessary
steps to properly perfect its security in the scooter on the day of theloan. The next day,
Billy borrowed money from Second Bank, and he entered an agreement listing the
same scooter as collateral. Second Bank also took all necessary steps to
properly perfect its security in the scooter on the day of the loan. Billy
defaults on bothloans, defaulting on
Second Bank and then on First Bank. Which of the following statements regarding
this set of facts is true?
7.
Tom gave amortgageto
Big Bank. Big Bank failed to record the mortgage. Then Tom gave a mortgage to
Second Bank. Second Bank recorded the mortgage and didn’t know about the
mortgage to Big Bank. After Second Bank recorded, Big Bank recorded its
mortgage. After both mortgages are recorded, Tom defaults on both debts. Which
of the following statements is true?
8.
Sally is laid off
from work and is concerned that she won’t be able to continue her group
insurance coverage. You tell her she will probably be able to continue it for a
period of time by paying her own premiums under protections provided by
9.
Candy purchase a.justanswer.com/multiple-problems/6p1p9-insurance-secured-transactions-bankrtupcy-11-carl.html”>lifeinsurancepolicy. Six months
later, Candy falls into a severedepressionand
kills herself. Which of the following statements is true?
10.
Sammy took out a
home insurance policy on the home of his neighbor, Ed. Three months later, Ed’s
home mysteriously burned down. Sammy attempted to collect on the policy he
purchased earlier. Which of the following is true regarding this set of facts?
11.
Carl gave Ted a
mortgage. Which is the following is most likely collateral for the mortgage? Liza
borrows money from First Finance Company for miscellaneous expenses. Liza and
First Finance agree that Liza’s diamond ring shall serve as collateral for the
loan. Two weeks later, Liza takes a loan from Second Finance Company listing
the same diamond ring as collateral. Neither First Finance nor Second Finance
takes any additional steps. Liza defaults on both loans. Second Finance demands
possession of the diamond ring and Liza gives it to them. Which of the
following statements regarding this set of facts is true?
12.
Bob forgot to
make his premium payment this month. The policy lapses,
13.
Sally and Carl
have received a.justanswer.com/multiple-problems/6p1nt-insurance-secured-transactions-bankruptcy-1-bob-forgot.html”>foreclosurenotice.
The foreclosure sale is set to take place in seven days. They contact a.justanswer.com/multiple-problems/6p1nt-insurance-secured-transactions-bankruptcy-1-bob-forgot.html”>bankruptcyattorney. The attorney
tells them the foreclosure proceedings will be halted, at least temporarily, if
they file bankruptcy, due to the
14.
Zeke has
purchased insurance with a double-.justanswer.com/topics-indemnity/”>indemnitybenefit. This means
_________
15.
What type of life
insurance would most likely be used to cover the outstanding balance of a home
mortgage?
16.
Tom contacts an
attorney about filing bankruptcy. The attorney says that Tom will have to pass
a means test. This suggests the attorney is planning to file Tom’s bankruptcy
under
17.
Carl is in a car
accident caused by Frank. Carl was able to collect damages and medical expenses from
his own insurance company even though fault had yet to be determined. Carl
probably lives in a state that requires __________ insurance.
18.
Tom purchases a life insurance policy and then
joins the military. Tom is deployed in a combat zone and killed by enemy
soldiers. Tom’s wife applies for the insurance proceeds. Which of the following
is most likely?
19.
Tom has fire insurance to protect his house.
There’s a fire. Fire damages the property. When firefighters spray water on the
fire to put it out, the water causes damage. In addition, to keep the fire from
spreading to neighboring houses, the firemen destroy part of the house. Which
of the following damage typically would be covered under a fire insurance
policy?