CPCU 530 - Practice Exam
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Chapter 8: Group Life Insurance 17555 CPCU 520 (Assignments 3-4) FP
Teacher 10 terms 10 terms 355 terms 41
njulian_wfg Preview qutlughdaud Preview CarsonBoren10 Preview
Terms in this set (309)
Miguel seeks to insure his personal auto An express contract 1 multiple choice option
to comply with state regulations. He
contacts an insurance agent who
provides Miguel with a personal auto
policy with Atlas Motorist Insurance
Company ("Atlas"). Which one of the
following best describes the contractual
relationship between Miguel and Atlas?
Maria owns a commercial building and A bilateral contract 3 multiple choice options
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?
Daniel offers a ride to Lily, a ten-year-old, It lacks a legal purpose. 3 multiple choice options
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?
,Tool Corporation has operated Chapter 11 3 multiple choice options
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 Company has
incurred substantial debt to keep the
operation running and save jobs, but they
can no longer access bank financing. Tool
Company believes that it can return to
profitability if it reorganizes. Under which
chapter of the bankruptcy code should
Tool Corporation file?
Located in a small midwestern town, Bin's Employment at will 3 multiple choice options
Deli hires youthful workers and pays
hourly wages. None of their employees
are members of a protected class. Which
one of the following legal concepts
permits Bin's Deli to release any of its
employees at any time for any reason, or
no reason?
Fernanda runs a warehouse in New Jersey. UCC Article 7 permits Fernanda to limit her liability through terms in the
The business is successful because it has warehouse receipt.
major highway access and is close to
major consumer markets. Manufacturers
from around the country store goods
bound for Northeastern customers at
Fernanda's warehouse. Given the large
amount of goods stored by others in her
warehouse, Fernanda is concerned about 3 multiple choice options
her exposure if something happens to the
warehouse or the goods, so she seek
advice from a lawyer about how to limit
her exposure to loss. Which one of the
following best describes Fernanda's
options in addressing this liability?
In February, Ann contracts with Mahdi to The court would find for Mahdi because Ann's goods are non-conforming.
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 3 multiple choice options
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?
, Diego and Georgia meet in a bar and Diego lacked capacity to enter into a contract because he was inebriated.
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 2 multiple choice options
$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?
Erin has worked full-time for the last five The law firm must offer Erin up to 12 weeks of unpaid leave in a 12-month period,
years as a librarian for a law firm with 100 with no loss of accrued employment benefits.
attorneys located in a large downtown
office building. Erin and her husband are
happy to announce that Erin is expecting
a baby in six months. She inquires with the
law firm's human resources department
3 multiple choice options
about her rights for parental leave under
the Family Medical Leave Act (FMLA).
Which one of the following best
describes what the law firm must offer
Erin under the FMLA?
Tile Roofing is a contractor specializing in Occupational Safety and Health Act 3 multiple choice options
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?
Mustafa met with his insurance agent Lucy Mustafa will win, if Delmond's s delay on his application was unreasonable.
to obtain a businessowners policy. Lucy
helped Mustafa complete an application
and sent the signed application along
with Mustafa's premium check to
Delmond Insurance Co. Delmond never
responded to Mustafa. Ninety days later, 3 multiple choice options
Mustafa had a loss to his business that
would have been covered by the
Delmond policy. If Mustafa files suit
against Delmond to receive
compensation for his loss,
Larissa has a property policy covering her Policy analysis. 3 multiple choice options
auto repair shop. The shop is totally
destroyed by a fire. The process of
determining whether and to what extent
this specific loss is covered under Larissa's
property policy is known as
Which one of the following statements Waiver is contractual in nature and rests upon agreement between parties.
distinguishes estoppel from waiver? 3 multiple choice options
With a contract of indemnity, the insurer An amount directly related to the amount of loss. 3 multiple choice options
agrees, in the event of a covered loss, to
pay
10 studiers today Leave the first rating
Save
Students also studied
Chapter 8: Group Life Insurance 17555 CPCU 520 (Assignments 3-4) FP
Teacher 10 terms 10 terms 355 terms 41
njulian_wfg Preview qutlughdaud Preview CarsonBoren10 Preview
Terms in this set (309)
Miguel seeks to insure his personal auto An express contract 1 multiple choice option
to comply with state regulations. He
contacts an insurance agent who
provides Miguel with a personal auto
policy with Atlas Motorist Insurance
Company ("Atlas"). Which one of the
following best describes the contractual
relationship between Miguel and Atlas?
Maria owns a commercial building and A bilateral contract 3 multiple choice options
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?
Daniel offers a ride to Lily, a ten-year-old, It lacks a legal purpose. 3 multiple choice options
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?
,Tool Corporation has operated Chapter 11 3 multiple choice options
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 Company has
incurred substantial debt to keep the
operation running and save jobs, but they
can no longer access bank financing. Tool
Company believes that it can return to
profitability if it reorganizes. Under which
chapter of the bankruptcy code should
Tool Corporation file?
Located in a small midwestern town, Bin's Employment at will 3 multiple choice options
Deli hires youthful workers and pays
hourly wages. None of their employees
are members of a protected class. Which
one of the following legal concepts
permits Bin's Deli to release any of its
employees at any time for any reason, or
no reason?
Fernanda runs a warehouse in New Jersey. UCC Article 7 permits Fernanda to limit her liability through terms in the
The business is successful because it has warehouse receipt.
major highway access and is close to
major consumer markets. Manufacturers
from around the country store goods
bound for Northeastern customers at
Fernanda's warehouse. Given the large
amount of goods stored by others in her
warehouse, Fernanda is concerned about 3 multiple choice options
her exposure if something happens to the
warehouse or the goods, so she seek
advice from a lawyer about how to limit
her exposure to loss. Which one of the
following best describes Fernanda's
options in addressing this liability?
In February, Ann contracts with Mahdi to The court would find for Mahdi because Ann's goods are non-conforming.
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 3 multiple choice options
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?
, Diego and Georgia meet in a bar and Diego lacked capacity to enter into a contract because he was inebriated.
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 2 multiple choice options
$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?
Erin has worked full-time for the last five The law firm must offer Erin up to 12 weeks of unpaid leave in a 12-month period,
years as a librarian for a law firm with 100 with no loss of accrued employment benefits.
attorneys located in a large downtown
office building. Erin and her husband are
happy to announce that Erin is expecting
a baby in six months. She inquires with the
law firm's human resources department
3 multiple choice options
about her rights for parental leave under
the Family Medical Leave Act (FMLA).
Which one of the following best
describes what the law firm must offer
Erin under the FMLA?
Tile Roofing is a contractor specializing in Occupational Safety and Health Act 3 multiple choice options
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?
Mustafa met with his insurance agent Lucy Mustafa will win, if Delmond's s delay on his application was unreasonable.
to obtain a businessowners policy. Lucy
helped Mustafa complete an application
and sent the signed application along
with Mustafa's premium check to
Delmond Insurance Co. Delmond never
responded to Mustafa. Ninety days later, 3 multiple choice options
Mustafa had a loss to his business that
would have been covered by the
Delmond policy. If Mustafa files suit
against Delmond to receive
compensation for his loss,
Larissa has a property policy covering her Policy analysis. 3 multiple choice options
auto repair shop. The shop is totally
destroyed by a fire. The process of
determining whether and to what extent
this specific loss is covered under Larissa's
property policy is known as
Which one of the following statements Waiver is contractual in nature and rests upon agreement between parties.
distinguishes estoppel from waiver? 3 multiple choice options
With a contract of indemnity, the insurer An amount directly related to the amount of loss. 3 multiple choice options
agrees, in the event of a covered loss, to
pay
