DIRECTIONS: READ FIRST!!!

DIRECTIONS: READ FIRST!!!

You must answer all 3 of the following blog posts. There are correct answers, so make sure you are certain in your answers. Use your notes or book if necessary.

One Acre Exemption

Under the state exemptions to the bankruptcy act allowable under the law of a large southwestern sate, there is a one-acre exemption for the debtor's home. Two brothers, Robert and Lyle Quest are forced into involuntary bankruptcy due to some precious metal speculations. Robert lives in a penthouse atop a $62million office building he owns. Lyle's penthouse is a top a $71 million building that he owns. Each claims the one acre due under the state law.

The creditors claim that they should be able to reach all the value in the one acre except for the $15,000 exemption allowed by the federal law.

Who will win? Explain.

Violating Bankruptcy Laws

Mark is greatly upset and wonders if he should report what appears to him to be a flagrant abuse of the bankruptcy law. The individual debtor in question has been living for years in a house that is worth at least $100,000 and maybe much more. Recently, the debtor went through a bankruptcy, yet he and his family still live the house.

Is such a result possible without violating the bankruptcy laws? Explain.

What chapter of the laws might make it possible?

Pension...

One month before being forced into bankruptcy Lyle retired from his position as president of the brothers' company. He then began drawing an amount equal to his old salary ($4 million per year) as his pension. He claimed that the pension was exempt from his creditors' claims as the state exemption mirrored the federal exemption in the area.

Is he correct? Explain.

DIRECTIONS: READ FIRST!!!

DIRECTIONS READ FIRST!!!

You need to answer the 4 required posts and 2 others, for a total of 6 posts! Each post needs to be answered in a minimum of 3 sentences.

Life Insurance

When Henecker took out his life insurance policy, he misrepresented his age as 27. In reality he was 34.

Will the insurance company be required to pay on the policy when Henecker dies?

Bank Robbery

*REQUIRED*

A month after his release from jail, Bill Bravo insured his own life in a double indemnity policy. Two months later, he was killed while attempting to hold up a bank. The insurance company refused to pay the benefits to Bill's wife and son, even though the policy contained no provision excluding liability if the insured died as a result of violating the law.

Under what legal grounds can the insurance company refuse to pay this claim? Explain.

Liability Insurance

Olsen negligently backed into Sbatino's car. Olsen was very apologetic and, after a few minutes of negotiation, paid Sabatino for the damage. Olsen then asked his automobile insurance company to reimburse him under his liability coverage for the amount he had paid Sabatino.

Must the insurance company do so? Explain.

Wiring Short

*REQUIRED*

Some of the wiring in Thomas' car shorted out and started a fire. Before the blaze could be extinguished, the car was destroyed.

What type of automobile insurance coverage would indemnify Thomas? Explain.

Fire Insurance

*REQUIRED*

Scandinavian Fire Insurance Company insured Carnes against fire. One day while ironing he left the room to answer the telephone and negligently forgot to turn off the iron. The iron fell from the ironing board, and the carpet caught fire. The fire then spread tot he drapes. As flames engulfed the room, smoke damaged the remainder of the house.

Will the loss be covered by the policy?