True$-$False QuestionsTrue$-$False Questions

Risk management involves the transfer of certain risks from an individual or a business to an insurance

company.

Insurance is classified by the nature of the person or interest protected.

An insurance broker is an agent of an insurance company.

An insurance applicant is usually protected from the time an application is made, if a premium has been

paid, possibly subject to certain conditions.

A person can insure anything in which they have an insurable interest.

An application for insurance is not part of the insurance contract.

The insurable interest in life insurance must exist at the time the policy is obtained.

An antilapse clause provides that an insurance policy lapses if the insured does not pay a premium exactly

on time.

In courts, the words used in an insurance policy are given special meaning.

A debtor must be insolvent to file a voluntary petition.

An automatic stay is a suspension of all judicial proceedings on the occurrence of an independent event.

The same principles govern the filing of a Chapter $7$ petition and a Chapter $11$ proceeding.

A bankruptcy may be commenced by involuntary petition under Chapter $13.$

Generally, in a bankruptcy proceeding, any creditor's claim is allowed.

When a business debtor files for Chapter $11$ protection, the debtor is not allowed to continue in business.

No small business can avoid creditors' committees under Chapter $11.$

Bankruptcy proceedings are held in federal bankruptcy courts.

A discharge obtained by fraud can be revoked within one year.