CPCU 530 Test Questions 2025/2026
Exam All Answers and Illustrations
Given
True - 🧠 ANSWER ✔✔-If the jurisdiction of the federal courts is based on
diversity of citizenship, the subject matter of the dispute may be which
state's law applies
Judical Branch - 🧠 ANSWER ✔✔-is charged with deciding if another branch
of government has the power to enact a new law
Complaint - 🧠 ANSWER ✔✔-This must include a requested remedy
Rulemaking function of administrative agencys - 🧠 ANSWER ✔✔-A public
hearing is required if request by a government agency or 25 interested
individuals
Investigative Function of administrative agencys - 🧠 ANSWER ✔✔-receive
the power to use subpoenas from legislation
Contracts - 🧠 ANSWER ✔✔these may be illegal for the following reasons:
---are contray to constitutional law
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
1
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, ---are contrary to statutory law
---are contrary to case law
---are against public law
---contrary to tort law is not a thing
Exculpatory Clause - 🧠 ANSWER ✔✔-These are typically unenforceable
when the complaining party has a bargaining disadvantage
Frustration of purpose - 🧠 ANSWER ✔✔-occurs when an unforeseen event
undermines a party's principal purpose for entering into a contract, and
both parties knew of this principal purpose at the time the contract was
made
Anticipatory breach - 🧠 ANSWER ✔✔-this only applies to bi-lateral
contracts
nonbreaching party - 🧠 ANSWER ✔✔-a minor breach of contract may
temporarily suspend a duty of performance for these people
True - 🧠 ANSWER ✔✔-One type of consideration is a binding promise
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
2
PRIVACY STATEMENT. ALL RIGHTS RESERVED
Exam All Answers and Illustrations
Given
True - 🧠 ANSWER ✔✔-If the jurisdiction of the federal courts is based on
diversity of citizenship, the subject matter of the dispute may be which
state's law applies
Judical Branch - 🧠 ANSWER ✔✔-is charged with deciding if another branch
of government has the power to enact a new law
Complaint - 🧠 ANSWER ✔✔-This must include a requested remedy
Rulemaking function of administrative agencys - 🧠 ANSWER ✔✔-A public
hearing is required if request by a government agency or 25 interested
individuals
Investigative Function of administrative agencys - 🧠 ANSWER ✔✔-receive
the power to use subpoenas from legislation
Contracts - 🧠 ANSWER ✔✔these may be illegal for the following reasons:
---are contray to constitutional law
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
1
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, ---are contrary to statutory law
---are contrary to case law
---are against public law
---contrary to tort law is not a thing
Exculpatory Clause - 🧠 ANSWER ✔✔-These are typically unenforceable
when the complaining party has a bargaining disadvantage
Frustration of purpose - 🧠 ANSWER ✔✔-occurs when an unforeseen event
undermines a party's principal purpose for entering into a contract, and
both parties knew of this principal purpose at the time the contract was
made
Anticipatory breach - 🧠 ANSWER ✔✔-this only applies to bi-lateral
contracts
nonbreaching party - 🧠 ANSWER ✔✔-a minor breach of contract may
temporarily suspend a duty of performance for these people
True - 🧠 ANSWER ✔✔-One type of consideration is a binding promise
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
2
PRIVACY STATEMENT. ALL RIGHTS RESERVED
