Author Question: Meridian Insurance Company does not write insurance policies in the Bedford borough area. There have ... (Read 247 times)

lracut11 · **on:** Jun 24, 2018

Meridian Insurance Company does not write insurance policies in the Bedford borough area. There have been too many claims from that area and we just cannot afford to write policies there. Meridian:
A)Is entitled to determine where it will and will not do business.
B)Is engaged in redlining.
C)Is engaged in steering.
D)Is engaged in blockbusting.

Question 2

Charles Keating, the former CEO of Lincoln Savings and Loan, had a life-time dream of constructing the ultimate resort. Prior to his conviction for fraud charges in California, Keating had nearly completed his Phoenician resort. However, court records list 61 subcontractors as being owed money, including 120,000 for metal work, 303,000 for glass and windows, 2,400,000 for electrical work, 31,000 for painting, and 18.5 million to the general contractor. There was almost 10 million left to be distributed for payments. How would the distribution be handled?

epscape · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

B

Answer to Question 2

The issues are priority rights among and between mechanic's as well as whether there is a priority for the general contractor vs. the subs. Those responsible for distribution would examine the following factors:
a. When the work was done.

b. When the liens were filed.

c. The mechanisms for payment of subs and state laws on maximum paid to subs vs. general contractor.

d. Whether the general contractor had failed to pay any of the amounts that were due to the subcontractors.

e. Computation, if necessary, of pro rata shares of the subcontractors.