Comprehensive CPCU 530 Q&A Exam Bundle

Special characteristics of insurance contracts They are conditional They involve fortuitous events and the exchange of unequal amounts They are contracts of utmost good faith They are contracts of adhesion They are contracts of indemnity They are non-transferable Conditional contract A contr...

Characteristics of Insurance Contracts - Conditional - Invovle fortuitious events and the exchange of unequal amounts - Contracts of utmost good faith - Contracts of adhesion - Contracts of indemnity - They are nontransferable Four Essential Elements of a Cotnract - Agreement - Capacity to ...

Doctrine of Stare Decisis "To stand on decided" -lower courts must follow precedents set by higher courts Equity What is right or fair Difference between common and civil law Common-derived from court decisions Civil- rely on scholarly interpretation of codes and constitutions NAIC ...

-Agreement (which includes the offer and acceptance) The first essential ingredient of a legally binding contract is a valid agreement between the offeror and the offeree 4) Undue influence—The improper use of power or trust to deprive a person of free will and to substitute that person's objecti...

Civil Law -Roman Empire -Code of written laws and statutes -Based on interpretation of codes Common Law -England -Basis for U.S. legal system and all other state legal systems -Based primarily on court cases Doctrine of stare decisis -method of resolution that relies on precedents to sett...

Daniel offers a ride to Lily, a ten-year-old, and takes her to his house where he locks her in his cellar and demands money from Lily's parents to secure her return. The parents agree to pay and Lily is returned, but Daniel never receives the money. He sues Lily's parents for breach of contract. W...

How are partners treated in relation to the partnership? partners are agents of the partnership, laws of agency apply to the partners Joint venture established to conduct a single transaction Shareholders can ask for involuntary dissolution if : 1. Corporate assets misapplied/wasted 2. Shareh...

Cian purchased a house with money loaned to him by Keithly Mortgage Co. (KMC). Cian obtained a homeowner policy from Melfor Insurance—containing a standard mortgage clause—which covered the house for damage due to windstorm. A windstorm destroyed Cian's house three years later. Which one of the...