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Insurance, Secured Transactions and Bankruptcy Questions




Question;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 alifeinsurancepolicy. 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 aforeclosurenotice.;The foreclosure sale is set to take place in seven days. They contact abankruptcyattorney. 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-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?


Paper#51380 | Written in 18-Jul-2015

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