CPCU 530 EXAM 70 QUESTIONS & CORRECT
ANSWERS LATEST 2025
Furkan, who was insured with Argot Insurance Company, ran a stop sign and hit
Katie, injuring her severely. Katie sued Furkan and Argot Insurance Company
jointly. This action is known as - ANSWER-Direct action, pursuant to statute.
Mikael, a new insurance agent, sent a letter to all residents of his apartment
complex that set out the basic terms of a renter's policy and stated: "I will issue
this policy to you and expect your $300 annual premium if I don't hear from you
to the contrary within 30 days." Linnea, a neighbor, received this letter but did
not respond. Which one of the following statements about Linnea's legal
obligation under contract law is true? - ANSWER-Linnea has no legal obligation to
pay Mikael $300 because no prior course of dealing supports this.
Which one of the following would most likely be recognized by a court as
something that an insurer could properly waive? - ANSWER-Policy notice of loss
requirements
Katie met with her insurance agent Luke to discuss Katie's insurance needs. Luke
recommended that Katie purchase a renter's policy and Katie agreed with Luke's
recommendation. Luke helped Katie complete a renter's insurance application,
Katie signed the application, and Luke sent the application to the Argot Insurance
Company. The submission of the application to Argot was - ANSWER-An offer
Hanna is insured under a life insurance policy written by Cromley Insurance, with
a two-year contestable period. Hanna made a material misrepresentation about
her health in her insurance application. Hanna died five years after Cromley
issued the policy to her. Which one of the following statements correctly
, describes how Cromley should handle a claim under Hanna's life insurance policy
submitted by Hanna's survivors? - ANSWER-Pay the claim because more than two
years have passed without contest
A gift requires which one of the following elements? - ANSWER-Delivery
Will had not paid Theodore for work on a building addition so Theodore filed a
mechanic's lien. Once Will pays for the work the mechanic's lien - ANSWER-May
be cleared by Will.
Karen and Lydia owned a farm with joint tenancy ownership for four years when
Karen became engaged. Lydia offered to purchase Karen's interest in the farm if
Karen would sign a quit claim deed. In this situation Karen is the - ANSWER-
Grantor.
Newlyweds Faith and Jake purchased a home and they can no longer afford to
pay their mortgage payments. They are now faced with foreclosure. Which one of
the following statements is true regarding the potential foreclosure? - ANSWER-
Foreclosure through public sale is the most likely the means by which Faith's and
Jake's interest in the property will be terminated.
Denny properly mortgaged land to Marvin to secure a loan for $100,000 and then
he conveyed the land to Ben. If Denny or Ben does not pay the loan when it falls
due - ANSWER-If a foreclosure sale yields excess money, it goes to Denny as
mortgagor or to Ben, the subsequent buyer.
Johnny sold a cabin to Hannah for $15,000. Two days later he sold the same cabin
to Arnie for $10,000. A week later, Johnny sold the cabin to Brenda and signed a
contract of sale for $22,000. That same day, Johnny sold the cabin to his sister
Kate for $5,000. Kate registered the deed but later learned of the other purchase
ANSWERS LATEST 2025
Furkan, who was insured with Argot Insurance Company, ran a stop sign and hit
Katie, injuring her severely. Katie sued Furkan and Argot Insurance Company
jointly. This action is known as - ANSWER-Direct action, pursuant to statute.
Mikael, a new insurance agent, sent a letter to all residents of his apartment
complex that set out the basic terms of a renter's policy and stated: "I will issue
this policy to you and expect your $300 annual premium if I don't hear from you
to the contrary within 30 days." Linnea, a neighbor, received this letter but did
not respond. Which one of the following statements about Linnea's legal
obligation under contract law is true? - ANSWER-Linnea has no legal obligation to
pay Mikael $300 because no prior course of dealing supports this.
Which one of the following would most likely be recognized by a court as
something that an insurer could properly waive? - ANSWER-Policy notice of loss
requirements
Katie met with her insurance agent Luke to discuss Katie's insurance needs. Luke
recommended that Katie purchase a renter's policy and Katie agreed with Luke's
recommendation. Luke helped Katie complete a renter's insurance application,
Katie signed the application, and Luke sent the application to the Argot Insurance
Company. The submission of the application to Argot was - ANSWER-An offer
Hanna is insured under a life insurance policy written by Cromley Insurance, with
a two-year contestable period. Hanna made a material misrepresentation about
her health in her insurance application. Hanna died five years after Cromley
issued the policy to her. Which one of the following statements correctly
, describes how Cromley should handle a claim under Hanna's life insurance policy
submitted by Hanna's survivors? - ANSWER-Pay the claim because more than two
years have passed without contest
A gift requires which one of the following elements? - ANSWER-Delivery
Will had not paid Theodore for work on a building addition so Theodore filed a
mechanic's lien. Once Will pays for the work the mechanic's lien - ANSWER-May
be cleared by Will.
Karen and Lydia owned a farm with joint tenancy ownership for four years when
Karen became engaged. Lydia offered to purchase Karen's interest in the farm if
Karen would sign a quit claim deed. In this situation Karen is the - ANSWER-
Grantor.
Newlyweds Faith and Jake purchased a home and they can no longer afford to
pay their mortgage payments. They are now faced with foreclosure. Which one of
the following statements is true regarding the potential foreclosure? - ANSWER-
Foreclosure through public sale is the most likely the means by which Faith's and
Jake's interest in the property will be terminated.
Denny properly mortgaged land to Marvin to secure a loan for $100,000 and then
he conveyed the land to Ben. If Denny or Ben does not pay the loan when it falls
due - ANSWER-If a foreclosure sale yields excess money, it goes to Denny as
mortgagor or to Ben, the subsequent buyer.
Johnny sold a cabin to Hannah for $15,000. Two days later he sold the same cabin
to Arnie for $10,000. A week later, Johnny sold the cabin to Brenda and signed a
contract of sale for $22,000. That same day, Johnny sold the cabin to his sister
Kate for $5,000. Kate registered the deed but later learned of the other purchase
