Question

1. Carl applies for fire insurance for his house. Before the application is processed, Carl’s house burns down. Carl will have coverage if the insurance company

1. Doesn’t find out about the fire until after the policy issues
2. Chooses to accept the application
3. Issued a binder
4. Makes coverage retroactive

2. Lucia had a homeowner’s insurance policy on her house. While she was away on vacation, her porch was burned to the ground. After the fire, her house was burglarized and goods worth thousands of dollars were stolen from it. When Lucia arrived home, she called the police. While a police officer was interviewing her in her dining room, a chandelier fell on him and knocked him unconscious. Which losses will Lucia’s homeowner’s policy cover?

1. The losses due to theft and the injuries sustained by the officer, but not the losses incurred by the fire
2. The losses incurred due to fire and theft, but not the injuries suffered by the police officer while on her property
3. The losses incurred due to fire and theft as well as the injuries suffered by the police officer while on her property
4. The losses due to fire and the injuries sustained by the officer, but not the losses incurred by theft

3. 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.

1. Uninsured motorist
2. Liability
3. No-fault
4. Collision

4. Kaycee obtains fire insurance on an empty warehouse. Later, Kaycee manufactures and stores fireworks in the building. A lightning strike in a thunderstorm explodes the fireworks and destroys the building. The fire insurance policy is

1. Valid, since there are negligible liabilities which apply to storing fireworks
2. Voidable if the lightning wasn’t foreseeable
3. Valid, since the building was empty when the policy was obtained
4. Void, since a material change in risk occurred

5. In 1978, Chapters 11 and 13 of the Bankruptcy Code were created, which

1. Made it easier for creditors to obtain bankruptcy relief
2. Allowed creditors to keep all of the debtor’s assets
3. Made it more difficult to declare bankruptcy
4. Allowed businesses and individuals to reorganize and keep going

6. What type of life insurance would most likely be used to cover the outstanding balance of a home mortgage?

1. Decreasing term insurance
2. Straight life
3. Endowment
4. Universal life

7. A/an _ provision in the security agreement allows the security interest of the creditor to also apply to goods the debtor acquires at a later time.

1. Acceleration
2. Floating lien
3. Forbearance
4. Attachment

8. Under the 2005 Bankruptcy Act, debtors are required to meet which of the following conditions to file for Chapter 7 bankruptcy?

1. They must provide a federal income tax return for the most recent tax year
2. Their income should be more than the state median income
3. They should be commodity brokers or stockbrokers
4. They must be involved in a fishing or farming business

9. Tom’s life insurance has no cash surrender value. It must be

1. Straight life
2. Limited-payment life insurance
3. Endowment
4. Term life insurance

10. An acceleration of the debt

1. Makes the entire amount of the debt due for immediate payment
2. Increases the monthly payment amount
3. Makes the repayment period of the entire debt one year
4. Increases the interest rate

11. An intentional withholding of a fact that would be of material importance to the insurer’s decision to issue a policy is called a/an

1. Misrepresentation
2. Adhesion contract
3. Estoppel
4. Fraudulent concealment

12. In which type of mortgage is the loan repaid when the borrower dies or the property is sold?

1. Balloon-payment mortgage
2. Reverse mortgage
3. Conventional mortgage
4. Variable-rate mortgage

13. A _ loan is that which deliberately misstates the qualifications of a borrower to push a loan through the approval process.

1. NINJA
2. Subprime
3. Home equity
4. Liar

14. Bob is concerned that Social Security retirement income won’t be enough to meet his needs. He is looking for a financial product that would provide him with steady retirement income later in life. You would recommend

1. Annuity
2. Term life insurance
3. Straight life insurance
4. Universal life insurance

15. Sear Enterprises wants to continue in business, but needs some relief from creditors’ claims. Sear Enterprises should consider filing under Chapter _ of the Bankruptcy Code.

1. 11
2. 12
3. 7
4. 13

16. The process of _ occurs when many mortgages are bundled together and sold as bonds to institutions, such as pension funds.

1. Securitization
2. Acceleration
3. Perfection
4. Foreclosure

17. A business files a Chapter 7 petition. A trustee appointed by the court, may be authorized to

1. Make payments made by the debtor within 90 days before the filing of the petition
2. Sell the debtor’s properties and hand over the proceeds of the sales to the debtor
3. Pay off the debts according to the personal priority list
4. Operate the business for a limited period of time

18. Generally, a security interest is perfected when the

1. Secured party has a legally enforceable right to take that property and sell it to satisfy the debt
2. Goods are sold, but regained as soon as the debtor takes possession of the new property
3. Buyer takes the property subject to a mortgage and the seller agrees to continue paying the debt
4. Secured party has done everything that the law requires to give the secured party greater rights to the goods than others have

19. Which of the following is true of recording a mortgage?

1. Recording a mortgage notifies any third party that the mortgagee has an interest in the real property covered by the mortgage
2. The second mortgagee must know about the first mortgage and is exempt from recording the mortgage
3. If the mortgage is not recorded and a later mortgage is given on the same property, the old mortgage is superior to the second
4. A failure to record the first mortgage would remove the obligation of the mortgage to the first mortgagee

20. The only individuals specifically excluded from filing under Chapter 11 are

1. Commodity brokers and stockbrokers
2. Real estate developers
3. Chartered accountants
4. Lawyers and judges

Answer 1

answer-

2- Lucia had a homeowner’s -C- The losses incurred due to fire and theft as well as the injuries suffered by the police officer while on her property

4- Kaycee obtains fire -D- Void since a material change in risk occurred

5-in 1978- D- allowed businesses and individuals to reorganize and keep going

6-A- Decreasing term insurance

7- Floating lien

11- In intentional- Fraudulent concealment

*as per HomeworkLib policy, i can answer only one question with its 4 subparts but i tried to answer as many i can for your help. please post the rest separately thank you..