A+ Answers of the following Questions

1. What type of life insurance would most likely be used to cover the outstanding balance of a home mortgage?
A. Universal life End of exam
B. Straight life
C. Endowment
D. Decreasing term insurance
2. Terry has medical coverage under Medicare. From this fact alone, you can infer it's likely that Terry is
A. poor.
B. age 65 or over.
C. in a long-term care facility.
D. disabled.
3. Tom is a consumer with a lot of credit card debt who wants to get a clean start and get rid of all of his debts. If he qualifies, the best chapter in bankruptcy for Tom is Chapter
A. 7.
B. 13.
C. 11.
D. 12.

1. Victor applies for life insurance. On the application, when asked if he had ever been diagnosed with cancer, he falsely said no. Later Victor died, and the insurance company found out about the previous diagnosis of cancer and refused to pay. What were the most likely grounds?
A. Failure to pay premiums
B. Estoppel
C. Misrepresentation
D. Concealment

2. 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?
A. Both First Finance and Second Finance possess equal rights in the diamond ring and must equally divide any proceeds from the sale of the ring.
B. First Finance Company possesses the priority claim because it loaned the money to Liza before Second Finance.
C. Neither finance company possesses a valid security interest in the diamond ring, and neither

possesses any remedy due to the failure to file a financing statement.
D. Second Finance Company possesses the priority claim because it perfected its security interest first.

3. What type of life insurance would most likely be used to cover the outstanding balance of a home
mortgage?
A. Universal life
End of exam
B. Straight life
C. Endowment
D. Decreasing term insurance

1. 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.
A. liability
B. no-fault
C. uninsured motorist
D. collision

2. Tom gave a mortgage to 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?
A. If these are the only two mortgages on the property, they'll share the proceeds pro-rata based on the amount due each.
B. Tom doesn't owe the debt to Big Bank because Big Bank failed to record the mortgage promptly.

C. Big Bank has a first mortgage.
D. Second Bank has a first mortgage.

3. Candy purchase a life insurance policy. Six months later, Candy falls into a severe depression and kills herself. Which of the following statements is true?
A. Life insurance will pay nothing, as there was death by suicide less than two years after purchasing the policy.
B. Life insurance will pay unless the suicide was an assisted suicide and the person assisting was the beneficiary of the policy.
C. The life insurance will pay double under the double indemnity provision.
D. Life insurance will pay proceeds if there's evidence that Candy suffered from a diagnosed psychological condition that accounts for why she committed suicide.

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
A. 12.
B. 11.
C. 13.
D. 7.
2. Tom's life insurance has no cash surrender value. It must be
A. term life insurance.
B. straight life.
C. endowment.

D. limited-payment life insurance
3. Tom gave a mortgage to 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?
A. If these are the only two mortgages on the property, they'll share the proceeds pro-rata based on the amount due each.
B. Tom doesn't owe the debt to Big Bank because Big Bank failed to record the mortgage promptly.
C. Big Bank has a first mortgage.
D. Second Bank has a first mortgage.

1. 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
A. Medicare.
B. COBRA.

C. Medicaid.
D. HIPPA.

2. 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
A. straight life insurance.
B. term life insurance.
C. annuity.
D. universal life insurance.

3. Charlie files Chapter 11 bankruptcy. __________ creditors have the right to vote on the plan.
A. All
B. Impaired
C. Secured
D. No