1. An application for insurance: ______.
2. a.generally is attached to the policy and becomes a part of the insurance contract.
3. b.has no binding effect on the applicant.
4. c.may be oral.
5. d.must be prepared by an attorney.

QUESTION 2

1. A voluntary petition in bankruptcy may not be filed by any of the following except a(n): ______.
2. a.railroad company.
3. b.municipality
4. c.insurance company.
5. d.husband and wife.

QUESTION 3

1. An extended time payment plan:
2. a.does not require creditors holding the same type or class of claim to be treated the same way.
3. b.will not allow the debtor to pay the debts in installments if the debtor's creditors had not originally agreed to such installments.
4. c.does not provide for a discharge of the debtor.
5. d.provides for a discharge of the debtor.

QUESTION 4

1. An insured person is generally allowed, by policy provision or statute, a grace period of what length of time in which to make the payment of a premium due on a life insurance policy?
2. a.60 to 61 days
3. b.14 to 15 days
4. c.30 to 31 days
5. d.90 days

QUESTION 5

1. Chapter 7 bankruptcy is:
2. a.an extended time payment plan.
3. b.always an involuntary proceeding.
4. c.a reorganization proceeding.
5. d.a liquidation proceeding.

QUESTION 6

1. An involuntary petition in bankruptcy may not be commenced against: ______.
2. a.a railroad company.
3. b.a nonprofit corporation.
4. c.a for-profit corporation.
5. d.an individual.

QUESTION 7

1. If there are twelve (12) or more creditors, at least __________ of those creditors whose unsecured and undisputed claims total __________ or more must sign the involuntary petition.
2. a.three (3); $15,575
3. b.one (1); $14,425
4. c.one (1); $15,575
5. d.three (3); $15,325

QUESTION 8

1. In a Chapter 11 rehabilitation plan, the debtor is able to do all of the followingexcept:
2. a.keep all of the assets (both exempt and nonexempt).
3. b.make a settlement that is acceptable to the majority of the creditors.
4. c.make a preferential transfer to self-settled trust.
5. d.remain in business.

QUESTION 9

1. Insurance designed to protect an insured driver or owner from the claims of others is called:
2. a.collision insurance.
3. b.liability insurance.
4. c.comprehensive insurance.
5. d.financial responsibility insurance.

QUESTION 10

1. What is a correct statement concerning burden of proof?
2. a.The insurer has the burden of proving that the loss was not covered.
3. b.Exceptions to coverage are liberally interpreted in favor of the insurer.
4. c.Exceptions to coverage are disregarded in life insurance matters.
5. d.The insured has the burden of proving that the loss was a covered loss.

QUESTION 11

1. What type of insurance is written for a specified number of years and terminates at the end of that period?
2. a.universal insurance
3. b.term insurance
4. c.endowment insurance
5. d.whole life insurance

QUESTION 12

1. The person to whom an insurance promise is made is called: ______.
2. a.the broker.
3. b.the insurer.
4. c.the insured.
5. d.the agent.

QUESTION 13

1. Part of every whole life insurance premium covers the cost of insurance. The remainder of the premium is devoted to the investment component of the policy, which builds up over time to its:
2. a.return point.
3. b.culmination value.
4. c.cash surrender value.
5. d.reimbursement point.

QUESTION 14

1. The ______ is merely a comparison of assets to liabilities without considering whether the debtor will be able to meet future obligations as they become due.
2. a.Balance sheet test.
3. b.Preferential transfer test.
4. c.Means test.
5. d.Cost of living test.

QUESTION 15

1. A debtor is presumed to be insolvent on and during what number of days immediately preceding the date of the filing of a bankruptcy petition?
2. a.90
3. b.60
4. c.30
5. d.120

QUESTION 16

1. A person has a(n) ______ in a particular piece of property if they would suffer a direct pecuniary loss if the property were destroyed.
2. a.underwriting.
3. b.hazard.
4. c.insurable interest.
5. d.contractual risk.

QUESTION 17

1. Certain transfers of property by the debtor to a creditor within 90 days of filing may be set aside by the bankruptcy trustee as __________ transfers, and the transferred property recovered by the trustee.
2. a.predetermined
3. b.preferential
4. c.preternatural
5. d.preordained

QUESTION 18

1. For property insurance, an insurable interest must exist: _____.
2. a.both at the time the policy is purchased and at the time the loss is sustained.
3. b.at the time of the loss.
4. c.for at least thirty (30) days before the loss is sustained.
5. d.at the time the policy is purchased.

QUESTION 19

1. If a man names his wife as beneficiary of his life insurance and the two are thereafter divorced, the insurance policy: ______.
2. a.becomes the property of the former wife.
3. b.is not affected.
4. c.is canceled automatically.
5. d.is divided into two policies on the life of each for one-half the amount of the original policy.

QUESTION 20

1. If a provision in an insurance policy is ambiguous:
2. a.parol evidence is admitted to show what was intended.
3. b.the policy is declared void and the insurer is required to return all premiums to the insured.
4. c.it is interpreted against the insurer.
5. d.it is interpreted in favor of the insurer because the insured could have rejected the policy.

QUESTION 21

1. The debtor will bedenieda discharge if:
2. a.the debtor refused to obey a lawful order of the court.
3. b.the debtor incurred debts because of negligence.
4. c.the debtor received a discharge ten (10) years previously.
5. d.the debtor had been extravagant.

QUESTION 22

1. Armenia purchased life insurance on her life. Regarding the beneficiary: _______.
2. a.Armenia must name a person with a pecuniary interest in her life.
3. b.Armenia must name a close relative or business associate.
4. c.Armenia must name a close relative.
5. d.Armenia may name whomever she wishes.