2023 Question 1 Best Products Corporation obtains an insurance policy that provides indemnity | Assignments Online

Question 1

Best Products Corporation obtains an insurance policy that provides indemnity against losses in trade or losses caused by the dishonesty of employees, the insolvency of debtors, or breaches of contract. This is

a. casualty insurance. 

b. fidelity or guaranty insurance. 

c. liability insurance. 

d. key-person insurance. 

 

Question 2

Burt obtains from Capital Insurance Company a policy that provides that if the parties cannot agree on the amount of a loss covered by the policy, an estimate of the value by an impartial third party can be demanded. This is

a. an antilapse clause. 

b. an arbitration clause. 

c. an appraisal clause. 

d. an incontestability clause.

 

Question 3 

Action Sales Corporation obtains an insurance policy that covers losses to Action Sales caused by fire. This is

a. casualty insurance. 

b. fire insurance. 

c. life insurance. 

d. title insurance. 

 

Question 4 

Checkerboard Pizza, Inc. (CPI), files for bankruptcy under Chapter 11. CPIs Chapter 11 plan must contain

a. a plan to turn over its future income to the trustee. 

b. a certificate proving attendance at a credit-counseling briefing. 

c. a provision of adequate means for the plans execution. 

d. a statement of preference for one creditor over another.