CPCU 540 EXAM 2023
COMPREHENSIVE QUESTIONS AND
VERIFIED ANSWERS 5 COPIES
◉ Which one of the following would most likely be recognized by a
court as something that an insurer could properly waive?
Select one:
A. Public policy prohibiting insuring illegal goods
B. The doctrine of insurable interest
C. Policy notice of loss requirements
D. A policy exclusion Answer: C. Policy notice of loss requirements
Insurers can waive any policy provision, providing it involves a right—
even standard policy language. Insurers cannot waive matters that
further public policy, like the doctrine of insurable interest, and they
cannot waive policy exclusions.
◉ 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
Select one:
A. Marvin has no right to foreclose on the mortgage.
B. If the proceeds of a foreclosure sale are insufficient to satisfy the debt
to Marvin, he has no right to obtain a deficiency judgment against
Denny.
, C. Ben cannot lose his interest because it is not subject to Marvin's
mortgage rights.
D. If a foreclosure sale yields excess money, it goes to Denny as
mortgagor or to Ben, the subsequent buyer. Answer: D. If a foreclosure
sale yields excess money, it goes to Denny as mortgagor or to Ben, the
subsequent buyer.
◉ Which one of the following statements is true regarding warranties?
Select one:
A. Warranties only need to be substantially true in order to be valid.
B. Warranties can create a void contract, but only if the insured knew
them to be deceitful.
C. Warranties are presumed to be immaterial, but their breach makes the
contract voidable.
D. Warranties may be either material or immaterial and are part of the
final contract. Answer: D. Warranties may be either material or
immaterial and are part of the final contract.
◉ Which one of the following presents the two central elements that can
give rise to an estoppel?
Available answer optionsSelect only one option
A
Incorrect statement of facts and intent
B
Knowledge and intentional relinquishment of a known right
C
COMPREHENSIVE QUESTIONS AND
VERIFIED ANSWERS 5 COPIES
◉ Which one of the following would most likely be recognized by a
court as something that an insurer could properly waive?
Select one:
A. Public policy prohibiting insuring illegal goods
B. The doctrine of insurable interest
C. Policy notice of loss requirements
D. A policy exclusion Answer: C. Policy notice of loss requirements
Insurers can waive any policy provision, providing it involves a right—
even standard policy language. Insurers cannot waive matters that
further public policy, like the doctrine of insurable interest, and they
cannot waive policy exclusions.
◉ 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
Select one:
A. Marvin has no right to foreclose on the mortgage.
B. If the proceeds of a foreclosure sale are insufficient to satisfy the debt
to Marvin, he has no right to obtain a deficiency judgment against
Denny.
, C. Ben cannot lose his interest because it is not subject to Marvin's
mortgage rights.
D. If a foreclosure sale yields excess money, it goes to Denny as
mortgagor or to Ben, the subsequent buyer. Answer: D. If a foreclosure
sale yields excess money, it goes to Denny as mortgagor or to Ben, the
subsequent buyer.
◉ Which one of the following statements is true regarding warranties?
Select one:
A. Warranties only need to be substantially true in order to be valid.
B. Warranties can create a void contract, but only if the insured knew
them to be deceitful.
C. Warranties are presumed to be immaterial, but their breach makes the
contract voidable.
D. Warranties may be either material or immaterial and are part of the
final contract. Answer: D. Warranties may be either material or
immaterial and are part of the final contract.
◉ Which one of the following presents the two central elements that can
give rise to an estoppel?
Available answer optionsSelect only one option
A
Incorrect statement of facts and intent
B
Knowledge and intentional relinquishment of a known right
C
