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CPCU 530 exam questions with answers
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CPCU 530 exam questions with answers
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CPCU 530 exam questions with answersDaniel |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. |Which |one |of |the |following |explains |why |Daniel's |contract |with |Lily's |parents |is |not
|legally |binding? |- |ANSWERS✔✔ |It |lacks |a |legal |purpose
Maria |owns |a |commercial |building |and |places |insurance |with |Bastion |Insurance. |Because |
the |annual |premium |is |high, |and |cash |is |tight, |Maria |decides |to |enter |into |a |premium |finance |
agreement |with |Finance |Co. |("Finance"). |Under |the |premium |finance |agreement, |Finance |
pays |Bastion |the |full |annual |premium |and |Maria |pays |Finance |a |monthly |amount |for |the |
premium, |a |fee |and |interest. |At |the |midpoint |of |the |policy |year, |which |one |of |the |following |
best |describes |Maria's |premium |finance |agreement |with |Finance? |- |ANSWERS✔✔ |A |
bilateral |contract
In |February, |Ann |contracts |with |Mahdi |to |deliver |clean |garden |top |soil |for |$30 |a |cubic |yard |to |
Mahdi's |farm |in |Pennsylvania. |No |time |for |delivery |is |stated |in |their |contract |but |the |parties |
understand |that |Mahdi |wants |to |use |the |soil |for |this |year's |planting |season. |In |March, |Ann |
delivers |garden |soil |that |is |contaminated |and |Mahdi |refuses |to |pay |because |he |believes |Ann |
breached |their |agreement. |Which |one |of |the |following |best |describes |how |a |court |would |rule |
on |Mahdi's |claim |that |Ann |breached |their |agreement? |- |ANSWERS✔✔ |The |court |would |find |
for |Mahdi |because |Ann's |goods |are |non-conforming.
Tile |Roofing |is |a |contractor |specializing |in |roof |installation |for |homes |and |commercial |
accounts. |Recently |several |Tile |Roofing |workers |have |fallen |and |suffered |significant |injuries |
because |the |workers |do |not |have |any |safety |harnesses |preventing |falls. |Under |which |one |of |
the |following |employee |welfare |laws |would |Tile |Roofing |potentially |be |subject |to |civil |or |
criminal |penalties? |- |ANSWERS✔✔ |Occupational |Safety |and |Health |Act
Tool |Corporation |has |operated |successfully |for |decades, |but |in |recent |years |stiff |price |
competition |from |overseas |suppliers |and |a |lack |of |skilled |labor |at |affordable |prices |have |made
|the |company |unprofitable. |Tool |Corporation |has |incurred |substantial |debt |to |keep |the |
, operation |running |and |save |jobs, |but |they |can |no |longer |access |bank |financing. |Tool |
Corporation |believes |that |it |can |return |to |profitability |if |it |reorganizes. |Under |which |chapter |
of |the |bankruptcy |code |should |Tool |Corporation |file? |- |ANSWERS✔✔ |Chapter |11
Diego |and |Georgia |meet |in |a |bar |and |enjoy |cocktails |together. |Diego |has |many |more |drinks |
than |Georgia |and |is |stumbling |and |slurring |his |speech. |Sensing |an |opportunity, |Georgia |
proposes |that |Diego |sell |her |his |expensive |Swiss |wristwatch |for |a |mere |$100 |and |Diego |
agrees. |The |next |day, |Georgia |appears |at |Diego's |office |with |$100 |asking |for |the |wristwatch. |
Which |one |of |the |following |arguments |is |best |for |Diego |to |avoid |the |contract? |- |
ANSWERS✔✔ |Diego |lacked |capacity |to |enter |into |a |contract |because |he |was |inebriated
Anna |was |recently |diagnosed |with |a |95 |percent |blockage |in |an |artery |in |her |brain. |She |
obtained |life |insurance |coverage |from |Cromley's |Life |Insurance |Company |shortly |after |the |
diagnosis. |Anna |answered |"no" |to |the |questions |on |the |life |insurance |application |concerning |
preexisting |conditions. |She |was |aware |the |coverage |might |be |rejected |by |Cromley |if |she |
shared |the |information |about |the |probability |of |a |stroke. |If |Anna |dies |from |a |stroke, |which |
one |of |the |following |must |Cromley |Life |Insurance |Company |prove |to |deny |Anna's |
beneficiary's |claim? |- |ANSWERS✔✔ |Concealment
Estoppel |arises |in |insurance |law |from |the |following |sequence |of |events: |false |representation |
of |a |material |fact, |reasonable |reliance |on |that |representation, |and |the |- |ANSWERS✔✔ |
Resulting |injury |or |detriment |to |the |insured
Miu |applied |for |auto |insurance |with |Etchley |Insurance. |Etchley's |application |asked |if |Miu |
had |any |accidents |in |the |prior |three |years |and |she |said |she |had |not. |In |fact |she |had |two |at-
fault |accidents, |one |of |which |involved |alcohol. |Etchley's |underwriting |guidelines |state |that |it |
will |not |write |insurance |for |applicants |with |more |than |one |accident |in |the |last |three |years. |
Etchley |issued |the |policy. |If |Miu |has |an |accident |and |Etchley |learns |about |the |prior |accidents |
at |that |time, |Etchley |should |- |ANSWERS✔✔ |Deny |Miu's |claim |due |to |her |material |
misrepresentation |on |which |Etchley |justly |relied.
Leah |called |her |insurance |agent |Matthias |right |after |Leah |purchased |her |first |car. |Leah |said:
|"I |need |coverage |on |my |car |(which |she |described |in |detail)—$100,000 |liability |and |$250 |
deductible |collision |and |comprehensive." |Mathias |responded: |"Great—you |have |this |
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