- where a corp borrows funds from an outside creditor with a promise to repay
- instrument that represents investment in the corp; holders (shareholders) become part owners of the corp
- Modern expressions of the Law of Consecration - how do we live it today?
- maximum # of shares a corp may issue, set forth in its articles
- Corporations get funding through issuing securities, the two main types being ___ and ___
- what is this an example of?:physician is engaged in malpractice & hospital will be sued as well for it
- who can make claims for architects and engineers works? what is especially important for them because of this?(professional liability loss exposures)
- t/f: employment practices liability insurance (epl/epli) is a separate policy from d&o coverage
- would the following issue be covered? what is the issue illustrated by the scenario?...(2) what would the defense to this be?Company A failed to establish and maintain a sound investment policy
- would the following issue be covered? what is the issue illustrated by the scenario?company A produced fraudulent financial statements
- Barkey Co. is a pool toy manufacturing company. Lately, creditors have noticed inconsistencies and shady actions by one of the company's directors. Barkey Co. creditors bring a suit in their own name against one of the company directors, Bernice Magellan, and the corporate entity for filing false documents with regulatory authorities. What type of suit is depicted in this scenario?a. Class Action Suitb. Derivative Suitc. Nonderivative Suitd. None of the above
- would the following issue be covered? what is the issue illustrated by the scenario?Company A's board of directors is being accused of "not doing their homework" of the company's financial condition (aka. for failing to keep informed of the institutions financial condition)
- employment practices liability insurance (epl/epli) generally covers newly formed or acquired organizations, but this coverage may be limited in time. generally how much time is it limited to for automatic coverages?
- t/f: insured's duty to report claims includes potential claims that may show up
- what type of suit is depicted in this scenario?: a large number of individuals are injured by taking a harmful medication manufactured by Big Larma. A small group of these individuals (acting to represent the larger group) files a case against Big Larma.
- under what coverage would the following scenario be covered?BOD realizes may have wrongfully terminated someone in the past. no claim has been filed yet.
- why might an EPL insurer prefer to offer coverage using a named perils approach versus a broad form approach?textbook
- When does a jurisdictional exception occur in an assignment?a)The appraiser must invoke the Ruleb)The client must invoke the Rulec)The state enforcement agency must approve of the exception to USPAP complianced)It is automatic when a law precludes compliance with a part of USPAP
- advancing defense costs can be problematic when it comes to indemnification by the corporation.what act contributes to making this difficult and why?
- would the following issue be covered? what is the issue illustrated by the scenario?Company A makes a loan to company Q. company Q is pretty clearly an insolvent company...but company A made the loan anyways thinking it was a good idea.