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CPCU® 530 Study Guide and Practice Exam

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Table Of Contents

Topic Page

Study Guide 3

Practice Exam 16

Practice Exam Answers 27

More Free Resources 33

Video Series 34

Next Steps 35

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CPCU® 530 – Definitions Study Guide

This study guide outlines the definitions that you will need to memorize to pass the CPCU® 530 exam. This is the most important aspect of the CPCU® 530 exam. In this worksheet, we are providing you with 100 of the most important definitions that could be on the exam.

See your practice exam on page 17



This WorksheetThis worksheet outlines the definitions that you will need to memorize to pass the CPCU® 530 exam. This is the most important aspect of the CPCU® 530 exam.

In this worksheet, we are providing you with 100 of the most important definitions that could be on the exam. Go through this worksheet and define each term.

Please note: This is not every term. There are over 600 definitions that you need to memorize to pass this exam. This is a list of 100 of the most important definitions.

This worksheet is for your studying purposes, we purposefully leave the below tables blank to force you to take notes on each legal term. This will help you memorize and retain the minor details of each definition. Please refer to your CPCU® 530 Comprehensive Online Course for this completed worksheet with each term defined.

In our Comprehensive Course, we dedicate an entire unit and practice exam of each chapter to help you memorize the definitions, the most important aspect of the CPCU® 530 exam. Please click hereto learn more about the Comprehensive Online Course (and money back guarantee).

CPCU® 530 – Definitions Study Guide


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US Law - DefinitionsTerm Definition

Civil law

Common law

Writ of certiorari

Plaintiff

Defendant

Subpoena

Direct examination

Res judicata

Collateral estoppel

Arbitration




Contract Law - DefinitionsTerm Definition

Unilateral contract

Implied contract

Offeror

Promissory estoppel

Negligence

Statute of frauds

Parol Evidence Rule

Novation

Accord and satisfaction

Breach of contract




Insurance Contract Law - DefinitionsTerm Definition

Novation

Accord and satisfaction

Breach of contract

Conditional contract

Contract of adhesion

Life estates

Material fact

Warranty

Election

Non-waiver agreement




Commercial Law - DefinitionsTerm Definition

UCC Article 2

Unilateral sales contract

UCC Article 3

Bailment

Bailor

UCC Article 7

Collateral

Security interest

UCC Article 9

Federal Trade Commission Act (FTC)




Property Law - DefinitionsTerm Definition

Accession

Confusion

Donor

Bailee

Rights of survivorship

Joint tenancy

Profits à prendre

Easements

Adverse possession

Trust deeds




Tort Law - DefinitionsTerm Definition

Tort

Reasonable person test

Negligence per se

Last clear chance

Assumption of risk defense

Assault

Libel

Attractive nuisance doctrine

Ultrahazardous activity

Vicarious liability




Agency Law - DefinitionsTerm Definition

Agency

Principal

Ratification

Implied authority

Revocation

Undisclosed principal

Independent contractor

Respondeat superior liability

Renunciation

Apparent authority




Insurance Agency Law - DefinitionsTerm Definition

Actual authority

Broker

General agent

Insurance agent

Producer

Special agent

Soliciting agent

Subagent

Dissolution

Producer Duties (all duties)




Business Law - DefinitionsTerm Definition

Employment at will doctrine

Fair Labor Standards Act (FLSA)

Merger

De Facto merger

Hostile takeover

Tender offer

Limited liability partnership

Antidiscrimination laws

Civil Rights Act

Norris-LaGuardia Act of 1932




Next StepsYou have now taken notes on the most important definitions that will be on the CPCU® 530

exam!

This is the most important (and most difficult) aspect of the exam. Now it’s time to go back and

study. Re-read through these tables and memorize each definition. This exam is tricky; it WILL

test you on the minor details.

Refer back to your CPCU® 530 Comprehensive Online Course for this completed worksheet

and a practice exam dedicated to helping you memorize the definitions of each chapter;

compare your notes with the online course to ensure you have captured every minor detail.

CPCU® 530 Definitions – Next Steps





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CPCU® 530 Practice Exam



A. Deposition

B. Subpoena

C. Motion

D. Interrogatories

1. Administrative agencies have the power to make rules

and regulations through administrative law. An

administrative agency can use which of the following

actions to gather information from a witness during a

hearing?




A. Bilateral contract

B. Offeror’s revocation

C. Lapse of time

D. Unilateral contract

2. Mac tells Jerry that he will pay $100 if Jerry mows his

lawn this week. Jerry mows Mac’s lawn this week, creating

a binding contract. This is an example of what?




A. The parol evidence rule does not apply to estoppel

B. Any words or acts expressing an insurer’s intention to give up their right to pursue a defense in court can constitute a estoppel

C. Waiver occurs when false representation of a material fact is made

D. Unlike estoppel, waiver states that any act of the insurer that can be interpreted as representation of a valid contract can prevent the insurer from avoiding the contract

3. Which of the following is true in regard to difference

between waiver and estoppel?




A. Bailee

B. Bailor

C. Trustee

D. Trustor

4. UCC Article 7 presents standards for documents of title

dealing with the shipping and storage of goods during

commercial sale. Which party of the contract creates this

document of title?




A. Dave – the bailee

B. Amy – the bailee

C. Dave – the bailor

D. Dave is not liable for Amy’s clothing

5. Amy drops off her clothes at Dave’s dry cleaning service. Amy

pays Dave $40 to dry clean her clothes by Tuesday of next week.

On Monday, a car crashes into Dave’s dry cleaning store,

damaging all of the clothes Amy left at Dave’s store. Who is

liable for the damaged clothing?




A. Contributory negligence

B. Last clear chance

C. Gross negligence

D. Assumption of risk

6. Ashely is driving down a major road when she

accidentally drives through a red light. An oncoming car

side swipes Ashley’s car, causing damage to both cars and

the other driver. The driver of the oncoming car sues

Ashely for damages. What is Ashely’s best defense in this

case?




A. Estoppel

B. Apparent authority

C. Express authority

D. Implied authority

7. Bill, a farm owner, is going on vacation and leaves Jess in

charge of his farm while he is gone. Jess is responsible for

feeding the farm animals and maintaining the day to day

operations of the farm. While Bill is on vacation, the cows run

out of food leaving them with nothing to eat. Jess, realizing this

is an emergency, attempts to contact Bill multiple times. She is

unable to contact Bill so she purchases new food. This is an

example of what?




A. A broker is a representative of the insurance customer.

B. Brokers also provide claims services to their customers.

C. A broker is employed by the insurer to act only on specific

transactions.

D. A broker works for the insurer to conduct all the insurer’s

transactions.

8. Which of the following is true in regards to a broker?




A. Share exchange

B. Tender offer

C. Hostile takeover

D. Conglomerate merger

9. In which of the following does the acquiring corporation

bypasses the target corporation’s board of directors to

convince the target corporation’s stockholders to elect a

new board of directors?




A. This regulates the collection of personal data outside of the European Union and provides data privacy for EU citizens during financial transactions.

B. This regulation only applies to companies operating business within the USA, and data relating to USA residents

C. This is the standard used as a model for data privacy regulations. This gives the consumer the right to know if their personal information is sold or disclosed and gives the consumer the right to decline to have their information sold.

D. This executive order enables the Executive branch of the US government to encourage the use of cybersecurity practices and cybersecurity information sharing.

10. What is the purpose of GDPR?


CPCU® 530 Practice Exam Answers



1. B) Subpoena Answer Explanation: Administrative agencies have the power to investigate if the investigation relates to the formation of general policy, agency rulemaking, or an ongoing prosecution. This power is granted by federal and state laws. Agencies have the power to subpoena a witness to an agency hearing.

A subpoena is a legal request for a witness to appear in court. This orders the witness to appear in court at a specific time to testify.

2. D) Unilateral contract Answer Explanation: A unilateral contract means only one party promises contractual performance. One party promises to perform an obligation for the other party.

In a unilateral contract, acceptance is complete when the offeree performs their promise. No communication of acceptance is needed in a unilateral contract. Performance constitutes a valid acceptance.

In this case, Jerry mows the lawn this week, creating a binding unilateral contract.

3. A) The parol evidence rule does not apply to estoppelAnswer Explanation: The parol evidence rule, which bars admitting evidence outside of the final form of the contract, does not apply to assertions of estoppel. This means an oral agreement made before the final contract can be used as evidence of a representation that was relied upon. Waivers are subject to the parol evidence rule.




4. A) BaileeAnswer Explanation: Article 7 of the UCC provides standards for documents of title to deal with shipping and storing goods during a sale. This document is created by the bailee (person temporarily holding the goods) as a receipt for the goods received.

5. D) Dave is not liable for Amy’s clothingAnswer Explanation: In a bailment intended for the mutual benefit of the bailee and bailor, the bailee owes the duty to provide “reasonable care” to prevent the property from being lost or damaged.

Since Amy (the bailor) and Dave’s (the bailee) bailment contract is for the mutual benefit of both parties (Amy receives dry cleaning service, Dave receives $40 payment), Dave is not liable for the damage because he could not have foreseen a car accident damaging Amy’s property. This is beyond reasonable care, meaning Dave is not liable for damage to Amy’s property.

6. B) Last clear chanceAnswer Explanation: The last clear chance rule states that the plaintiff can sue the defendant if they are able to prove that the defendant had the last opportunity to avoid causing injury. This rule states that the liable party is the party that had the last opportunity to avoid harm and failed to do so.

Ashely’s best defense will be to claim that the other driver had the last clear chance to avoid damage. Since the other driver crashed into Ashley’s car, they had the opportunity to avoid Ashley’s car and avoid damage.




7. D) Implied authorityAnswer Explanation: Implied authority is an authority that is not directly expressed to the agent. This authority is granted by the principal to the agent by custom, past relationship, or indication. An agent with a past relationship with the principal has implied authority to act on behalf of the principal in the case of an emergency where the principal cannot be reached or contacted. In this case, the agent can act beyond the instructions and directions outlined in the agency agreement if the action is intended to benefit the principal.

In this case, Jess has implied authority to purchase food because the cows have no food and otherwise would starve.

8. A) A broker is a representative of the insurance customerAnswer Explanation: A broker is a representative of the insurance customer. The broker is independent of all insurers and only works to obtain insurance for the customer.

9. C) Hostile takeoverAnswer Explanation: A hostile takeover is a situation where a corporation takes control over another entity without the typical decision-making associated with a merger. This happens when the acquiring entity elects to sidestep the target entity’s board of directors to receive representation by the target corporation’s stockholders. The acquiring corporation convinces the target corporation’s stockholders to elect a new board of directors to allow the acquisition.

10. A) This regulates the collection of personal data outside of the European Union and provides data privacy for EU citizens during financial transactions. Answer Explanation: The European Union (EU) implemented the General Data Protection Regulation, abbreviated as GDPR, to protect the personal data of citizens in the EU. This regulates the collection of personal data outside of the European Union and provides data privacy for EU citizens during financial transactions.

This regulation only applies to companies operating business within the EU, and data relating to EU residents. A violation of the GDPR can result in a fine up to 20 million euros or 4% of the total worldwide annual turnover of the previous financial year, whichever is greater.





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CPCU® 530 – More Resources

Blog PostsCPCU® 530 Exam Difficulty

CPCU® 530 Exam Questions

CPCU® 530 Exam Definitions

CPCU® 530 Exam Format

CPCU® Designation Overview

CPCU® Designation Salary

CPCU® Cost

CPCU® Exam Pass Rates

Or go to:

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https://associatepi.com/cpcu-530-difficulty/

https://associatepi.com/cpcu-530-exam-questions/

https://associatepi.com/cpcu-530-exam-format-definitions/

https://associatepi.com/cpcu-530-exam-format-definitions/

https://associatepi.com/cpcu-chartered-property-casualty-underwriter-designation/

https://associatepi.com/cpcu-salary-3/

https://associatepi.com/cpcu-designation-cost/

https://associatepi.com/cpcu-pass-rates-2/





CPCU® 530 – Video Series

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Step 1: Enroll in the CPCU® 530 Free Chapter One Course.

Step 2: Watch the CPCU® 530 Video Series.

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Step 4: Review the CPCU® 530 Pass Rate.

Step 5: Practice with more CPCU® 530 Exam Questions.

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api™ and cpcu® insurance designations - associatepi - study … · 2020. 1. 17. · pass your...

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