CPCU 530 EXAM SCRIPT 2026 COMPLETE
QUESTIONS AND ALL CORRECT ANSWERS
GRADED A+
⩥ An insured is accusing Millstone Insurance of unethical claims
handling practices. The Department of insurance (DOI) has issued a
subpoena requiring Millstone Insurance to produce its records for this
claim and documents on its claim handling procedures. Which one of the
following types of subpoena is being used by the DOI?
Select one:
A. Subpoena ad testificandum
B. Final order subpoena
C. Self-incrimination subpoena
D. Subpoena duces tecum. Answer: D. Subpoena duces tecum
⩥ Some contracts are voidable, and some agreements are void because
they are not contracts. When a contract is voidable, the right of
avoidance is available only to
Select one:
A. Parties in privity of the contract.
B. The offeror of the contract.
C. The offeree of the contract.I
,D. An innocent or injured party.. Answer: D. An innocent or injured
party.
⩥ Physician Betty administered medical services to stroke victim Karl
who was unconscious. She provided medication and direction and
followed all procedures. When Karl woke up, he refused other medical
services and he also indicated that he could not be held liable for any
expenses that he did not personally authorize or to which he did not
consent. It is likely that Karl might be required to pay the reasonable
value of the services received based on
Select one:
A. An implied-in-fact contract.
B. An implied-in-law contract.
C. A unilateral contract.
D. An executory contract.. Answer: B. An implied-in-law contract.
⩥ A contract is made between two parties for delivery of goods. The
goods are delivered and the receiving party pays for them. Which one of
the following terms describes the contract?
Select one:
A. ExecutedCorrect.
B. Exacted
C. Executory
D. Completed. Answer: A. Executed
,⩥ A homeowners policy is an example of
Select one:
A. An executory contract
B. A personal contract.
C. An implied-in-fact contract.
D. An implied-in-law contract.. Answer: A. An executory contract
⩥ for the extra two bushels and Hank refused to give her the apples
unless she paid for all six bushels. Which one of the following
statements is true?
Select one:
A. Hank breached the contract.
B. There was no valid offer made and therefore no contract between
Hilda and Hank.
C. Hank and Hilda did not mutually assent to the terms of the contract
when it was formed.
D. There was no communication of intent to contract from Hank to
Hilda.. Answer: A. Hank breached the contract.
⩥ Which one of the following most accurately describes the ability of an
offeror to revoke an offer made to an individual offeree?
Select one:
, A. An offeror can revoke an offer any time before acceptance, but the
revocation is effective only when communicated to the offeree and the
offeree actually receives the communication.
B. An offeror can revoke an offer any time before acceptance, but must
do so through the same means of communication used in making the
original offer.
C. An offeror can revoke an offer either by expressly refusing to abide
by it or by making a new offer to the offeree.
D. An offeror can revoke an offer by any reasonable means, at any time
before the offeree completes performance of the contract.. Answer: A.
An offeror can revoke an offer any time before acceptance, but the
revocation is effective only when communicated to the offeree and the
offeree actually receives the communication.
⩥ Charlotte wanted a swimming pool built in her backyard, so she asked
various pool installers she knew to give her an estimate. Only Emma
replied, and the price she quoted to Charlotte was much more than
Charlotte wanted to pay. A party that asks for offers
Select one:
A. Is free to accept or reject any offers that the party receives.
B. Is actually making an offer, and any reply to the request is an
acceptance of the original offer.
C. Must accept any reasonable offers that the party receives.
D. Must accept any offers that the party receives.. Answer: A. Is free to
accept or reject any offers that the party receives.
QUESTIONS AND ALL CORRECT ANSWERS
GRADED A+
⩥ An insured is accusing Millstone Insurance of unethical claims
handling practices. The Department of insurance (DOI) has issued a
subpoena requiring Millstone Insurance to produce its records for this
claim and documents on its claim handling procedures. Which one of the
following types of subpoena is being used by the DOI?
Select one:
A. Subpoena ad testificandum
B. Final order subpoena
C. Self-incrimination subpoena
D. Subpoena duces tecum. Answer: D. Subpoena duces tecum
⩥ Some contracts are voidable, and some agreements are void because
they are not contracts. When a contract is voidable, the right of
avoidance is available only to
Select one:
A. Parties in privity of the contract.
B. The offeror of the contract.
C. The offeree of the contract.I
,D. An innocent or injured party.. Answer: D. An innocent or injured
party.
⩥ Physician Betty administered medical services to stroke victim Karl
who was unconscious. She provided medication and direction and
followed all procedures. When Karl woke up, he refused other medical
services and he also indicated that he could not be held liable for any
expenses that he did not personally authorize or to which he did not
consent. It is likely that Karl might be required to pay the reasonable
value of the services received based on
Select one:
A. An implied-in-fact contract.
B. An implied-in-law contract.
C. A unilateral contract.
D. An executory contract.. Answer: B. An implied-in-law contract.
⩥ A contract is made between two parties for delivery of goods. The
goods are delivered and the receiving party pays for them. Which one of
the following terms describes the contract?
Select one:
A. ExecutedCorrect.
B. Exacted
C. Executory
D. Completed. Answer: A. Executed
,⩥ A homeowners policy is an example of
Select one:
A. An executory contract
B. A personal contract.
C. An implied-in-fact contract.
D. An implied-in-law contract.. Answer: A. An executory contract
⩥ for the extra two bushels and Hank refused to give her the apples
unless she paid for all six bushels. Which one of the following
statements is true?
Select one:
A. Hank breached the contract.
B. There was no valid offer made and therefore no contract between
Hilda and Hank.
C. Hank and Hilda did not mutually assent to the terms of the contract
when it was formed.
D. There was no communication of intent to contract from Hank to
Hilda.. Answer: A. Hank breached the contract.
⩥ Which one of the following most accurately describes the ability of an
offeror to revoke an offer made to an individual offeree?
Select one:
, A. An offeror can revoke an offer any time before acceptance, but the
revocation is effective only when communicated to the offeree and the
offeree actually receives the communication.
B. An offeror can revoke an offer any time before acceptance, but must
do so through the same means of communication used in making the
original offer.
C. An offeror can revoke an offer either by expressly refusing to abide
by it or by making a new offer to the offeree.
D. An offeror can revoke an offer by any reasonable means, at any time
before the offeree completes performance of the contract.. Answer: A.
An offeror can revoke an offer any time before acceptance, but the
revocation is effective only when communicated to the offeree and the
offeree actually receives the communication.
⩥ Charlotte wanted a swimming pool built in her backyard, so she asked
various pool installers she knew to give her an estimate. Only Emma
replied, and the price she quoted to Charlotte was much more than
Charlotte wanted to pay. A party that asks for offers
Select one:
A. Is free to accept or reject any offers that the party receives.
B. Is actually making an offer, and any reply to the request is an
acceptance of the original offer.
C. Must accept any reasonable offers that the party receives.
D. Must accept any offers that the party receives.. Answer: A. Is free to
accept or reject any offers that the party receives.
