Test 2 Flashcards
Obligation of applicant seeking insurance coverage to insurance company
Must act under good faith, otherwise the insurance policy is void (must answer questions truthfully)
obligation of insurance company in drafting an insurance policy for an applicant
Must outline what is and isn’t covered by the policy, company is liable for ambiguity. (Insurance is to determine whether something caused the damage
Requirement for beneficiary to collect on damage done to property
Must have equitable interest, if sold on credit then it may happen (can claim if does not own property)
Requirement for beneficiary to collect on injury or illness on themselves or other persons
Must have insurable interest in that individual at the time they acquired the insurance
Requirements for enforceable holographic will
Written in the will makers handwriting, will makers signature, mental capacity, distribution of things, (does not need a witness).
Requirements of a trust
Intent for settlor to create a trust, Existing income producing property (res), definite language as to who is the beneficiary, trustee independently manages the res
Duties of the trustee
no conflict of interest, safe and under control, understand terms,
General rule regarding revocability of trust by settlor
not revocable, however, in Texas it is allowed
Elements of Environmental Impact Statement
National Environmental Policy Act
obligation that any government interaction give a detailed statement that looks at the environmental impact (includes anyone that receives federal funding)
must be realistic alternatives stated
Bases for standing to challenge an action that will have or having an environmental impact
Standing is KEY DEFENSE
indirect impacts
aesthetic impacts
recreational impacts
enjoyability impact
CAN’T BE ASPIRATIONAL IMPACT
Liability of co-signer for debt of debtor if guarantor v. surety
Guarantor- their obligation to pay the bill of a debtor only arises if there is a judgement against the debtor
surety- can be gone after without judgement
can argue not to pay for the same reason the debtor didn’t pay
Violations under the Fair Debt Collection Practices Act
can’t discuss debts with third persons other than spouse
misrepresent themselves as attorney or law enforcement
communicate with people with known attorney
communicating at place of employment
repeated continuous calls
outside of 8am to 9pm
Artisan v. mechanic’s lien: priority over all other conflicting security interests and
difference/distinction between both
Artisans lean is on personal property. they get first priority
mechanics lien on land
if item brought in for repair is sold, only liable for value not sentimental value
Requirements of a security agreement
Agreement is written
debtor has equitable interest in the secured collateral
recognition of security interest generally signed or agreed to by debtor
general description of secured collateral
Requirements for repossession and sale of repossessed collateral
needs a security agreement
creditors must try and get the best price possible
creditors are given their dues
the surplus is returned back to the debtor
Requirements of a financing statement
debtors information
secured party’s information
collateral description
GIVES PERFECTION
Duration of a financing statement and requisites for enforceable continuation statement
Only lasts for 5 years, but me renewed within 6 months before expiration
Criteria for/impact of ‘automatic’ v. ‘super’ perfection of consumer good
automatic perfection- where a business is selling consumer to the debtor must have item in their inventory
super perfection- only applies to consumer goods
Perfection of PMSI in inventory
automatic perfection dealing with inventory. Receive secured interest in inventory
Perfection of PMSI in equipment
automatic perfection in equipment, secured on the equipment over creditors, reposes equipment
Buyer in the ordinary course of business v. good faith purchaser
Buyer in ordinary course of business- purchases an item in a normal business setting, collateral is the item, if the business goes bankrupt and balance is owed, they just pay it off
Good faith purchaser - next door neighbor, neighbor keeps what they bought
Bulk sales law requirements
protects creditors from companies selling their assets to avoid paying debts
Treatment/consequences of fraudulent transfer v. preferential transfer of asset
A fraudulent transfer occurs when a debtor intentionally or constructively transfers an asset to hinder, delay, or defraud creditors.
Can go back at least 2 years
must be returned to bankruptcy estate
A preferential transfer occurs when a debtor pays certain creditors within a specific period before filing for bankruptcy. The goal is to ensure equitable distribution of assets among creditors.
90 day period
return payment to estate
What is property Insurance for
risk shifting not prevention
