2023 1 Tom gave a mortgage to Big Bank Big Bank failed to record the mortgage | Assignments Online

1.   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. Big Bank has a first mortgage.
B. Tom doesn’t owe the debt to Big Bank because Big Bank failed to record the mortgage promptly.
C. Second Bank has a first mortgage.
D. If these are the only two mortgages on the property, they’ll share the proceeds pro-rata based on the amount due each.

2.   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.    
A. comprehensive
B. collision
C. no-fault
D. liability

3.   Terry has medical coverage under Medicare. From this fact alone, you can infer it’s likely that Terry is    
A. in a long-term care facility.
B. age 65 or over.
C. disabled.
D. poor.

4.   Tom’s life insurance has no cash surrender value. It must be    
A. limited-payment life insurance.
B. straight life.
C. endowment.
D. term life insurance.