CPCU 530 Chapter 7 Exam Questions and
Answers with Verified Solutions | Latest
Updated 2026
Agency A legal, consensual relationship that exists
when
one party, the agent, acts on behalf of
another
party, the principle
Agent In the agency relationship, the party that is
authorized by the principal to act on the
principal's
behalf
Principal The party in an agency relationship that
authorizes
the agent to act on the party's behalf
Power of attorney A written document that authorizes one
person to
act as another person's agent or
attorney-in-fact
Agency by estoppel An agency relationship created by a
principal's
words or conduct that causes a third party
to
reasonably believe that an agency exists
Answers with Verified Solutions | Latest
Updated 2026
Agency A legal, consensual relationship that exists
when
one party, the agent, acts on behalf of
another
party, the principle
Agent In the agency relationship, the party that is
authorized by the principal to act on the
principal's
behalf
Principal The party in an agency relationship that
authorizes
the agent to act on the party's behalf
Power of attorney A written document that authorizes one
person to
act as another person's agent or
attorney-in-fact
Agency by estoppel An agency relationship created by a
principal's
words or conduct that causes a third party
to
reasonably believe that an agency exists
