CPCU 530 EXAM 390 QUESTIONS & CORRECT
ANSWERS LATEST 2025
An insured is accusing Millstone Insurance of unethical claims handling practices.
The Department of insurance (DOI) has issued a subpoena requiring Millstone
Insurance to produce its records for this claim and documents on its claim
handling procedures. Which one of the following types of subpoena is being used
by the DOI?
Select one:
A. Subpoena ad testificandum
B. Final order subpoena
C. Self-incrimination subpoena
D. Subpoena duces tecum - ANSWER-D. Subpoena duces tecum
Some contracts are voidable, and some agreements are void because they are not
contracts. When a contract is voidable, the right of avoidance is available only to
Select one:
A. Parties in privity of the contract.
B. The offeror of the contract.
C. The offeree of the contract.I
D. An innocent or injured party. - ANSWER-D. An innocent or injured party.
Physician Betty administered medical services to stroke victim Karl who was
unconscious. She provided medication and direction and followed all procedures.
When Karl woke up, he refused other medical services and he also indicated that
he could not be held liable for any expenses that he did not personally authorize
,or to which he did not consent. It is likely that Karl might be required to pay the
reasonable value of the services received based on
Select one:
A. An implied-in-fact contract.
B. An implied-in-law contract.
C. A unilateral contract.
D. An executory contract. - ANSWER-B. An implied-in-law contract.
A contract is made between two parties for delivery of goods. The goods are
delivered and the receiving party pays for them. Which one of the following terms
describes the contract?
Select one:
A. ExecutedCorrect.
B. Exacted
C. Executory
D. Completed - ANSWER-A. Executed
A homeowners policy is an example of
Select one:
A. An executory contract
B. A personal contract.
C. An implied-in-fact contract.
D. An implied-in-law contract. - ANSWER-A. An executory contract
for the extra two bushels and Hank refused to give her the apples unless she paid
for all six bushels. Which one of the following statements is true?
,Select one:
A. Hank breached the contract.
B. There was no valid offer made and therefore no contract between Hilda and
Hank.
C. Hank and Hilda did not mutually assent to the terms of the contract when it
was formed.
D. There was no communication of intent to contract from Hank to Hilda. -
ANSWER-A. Hank breached the contract.
Which one of the following most accurately describes the ability of an offeror to
revoke an offer made to an individual offeree?
Select one:
A. An offeror can revoke an offer any time before acceptance, but the revocation
is effective only when communicated to the offeree and the offeree actually
receives the communication.
B. An offeror can revoke an offer any time before acceptance, but must do so
through the same means of communication used in making the original offer.
C. An offeror can revoke an offer either by expressly refusing to abide by it or by
making a new offer to the offeree.
D. An offeror can revoke an offer by any reasonable means, at any time before
the offeree completes performance of the contract. - ANSWER-A. An offeror can
revoke an offer any time before acceptance, but the revocation is effective only
when communicated to the offeree and the offeree actually receives the
communication.
Charlotte wanted a swimming pool built in her backyard, so she asked various
pool installers she knew to give her an estimate. Only Emma replied, and the price
she quoted to Charlotte was much more than Charlotte wanted to pay. A party
that asks for offers
, Select one:
A. Is free to accept or reject any offers that the party receives.
B. Is actually making an offer, and any reply to the request is an acceptance of the
original offer.
C. Must accept any reasonable offers that the party receives.
D. Must accept any offers that the party receives. - ANSWER-A. Is free to accept or
reject any offers that the party receives.
Juan's Accounting wants to upgrade its software program. It has been working
with Jane's Software Company to select the upgrades that will meet its business
needs and Juan's Accounting is ready to make an offer. Which one of the
following sets of elements must be included to constitute a legal offer?
Select one:
A. Legal purpose, period of time the offer is valid, and acceptance terms
B. Period of time the offer is valid, acceptance options, and intent to contract
C. Intent to contract, definite terms, and communication to the offeree
D. Legal purpose, definite terms, and options for the offeree - ANSWER-C. Intent
to contract, definite terms, and communication to the offeree
Franklin says to Dorian: "I will sell you 15 dog collars in any color at $10.00 each if
you give me the money by Saturday." Which one of the following statements
constitutes an unconditional and unequivocal acceptance by Dorian?
Select one:
A. I will buy the collars on Sunday when I come over to your house.
B. I hope to have the money this weekend to buy the dog collars you are selling if I
am able to get to the bank.
C. I accept. I will buy 15 dog collars at $8.00 each on Saturday.
ANSWERS LATEST 2025
An insured is accusing Millstone Insurance of unethical claims handling practices.
The Department of insurance (DOI) has issued a subpoena requiring Millstone
Insurance to produce its records for this claim and documents on its claim
handling procedures. Which one of the following types of subpoena is being used
by the DOI?
Select one:
A. Subpoena ad testificandum
B. Final order subpoena
C. Self-incrimination subpoena
D. Subpoena duces tecum - ANSWER-D. Subpoena duces tecum
Some contracts are voidable, and some agreements are void because they are not
contracts. When a contract is voidable, the right of avoidance is available only to
Select one:
A. Parties in privity of the contract.
B. The offeror of the contract.
C. The offeree of the contract.I
D. An innocent or injured party. - ANSWER-D. An innocent or injured party.
Physician Betty administered medical services to stroke victim Karl who was
unconscious. She provided medication and direction and followed all procedures.
When Karl woke up, he refused other medical services and he also indicated that
he could not be held liable for any expenses that he did not personally authorize
,or to which he did not consent. It is likely that Karl might be required to pay the
reasonable value of the services received based on
Select one:
A. An implied-in-fact contract.
B. An implied-in-law contract.
C. A unilateral contract.
D. An executory contract. - ANSWER-B. An implied-in-law contract.
A contract is made between two parties for delivery of goods. The goods are
delivered and the receiving party pays for them. Which one of the following terms
describes the contract?
Select one:
A. ExecutedCorrect.
B. Exacted
C. Executory
D. Completed - ANSWER-A. Executed
A homeowners policy is an example of
Select one:
A. An executory contract
B. A personal contract.
C. An implied-in-fact contract.
D. An implied-in-law contract. - ANSWER-A. An executory contract
for the extra two bushels and Hank refused to give her the apples unless she paid
for all six bushels. Which one of the following statements is true?
,Select one:
A. Hank breached the contract.
B. There was no valid offer made and therefore no contract between Hilda and
Hank.
C. Hank and Hilda did not mutually assent to the terms of the contract when it
was formed.
D. There was no communication of intent to contract from Hank to Hilda. -
ANSWER-A. Hank breached the contract.
Which one of the following most accurately describes the ability of an offeror to
revoke an offer made to an individual offeree?
Select one:
A. An offeror can revoke an offer any time before acceptance, but the revocation
is effective only when communicated to the offeree and the offeree actually
receives the communication.
B. An offeror can revoke an offer any time before acceptance, but must do so
through the same means of communication used in making the original offer.
C. An offeror can revoke an offer either by expressly refusing to abide by it or by
making a new offer to the offeree.
D. An offeror can revoke an offer by any reasonable means, at any time before
the offeree completes performance of the contract. - ANSWER-A. An offeror can
revoke an offer any time before acceptance, but the revocation is effective only
when communicated to the offeree and the offeree actually receives the
communication.
Charlotte wanted a swimming pool built in her backyard, so she asked various
pool installers she knew to give her an estimate. Only Emma replied, and the price
she quoted to Charlotte was much more than Charlotte wanted to pay. A party
that asks for offers
, Select one:
A. Is free to accept or reject any offers that the party receives.
B. Is actually making an offer, and any reply to the request is an acceptance of the
original offer.
C. Must accept any reasonable offers that the party receives.
D. Must accept any offers that the party receives. - ANSWER-A. Is free to accept or
reject any offers that the party receives.
Juan's Accounting wants to upgrade its software program. It has been working
with Jane's Software Company to select the upgrades that will meet its business
needs and Juan's Accounting is ready to make an offer. Which one of the
following sets of elements must be included to constitute a legal offer?
Select one:
A. Legal purpose, period of time the offer is valid, and acceptance terms
B. Period of time the offer is valid, acceptance options, and intent to contract
C. Intent to contract, definite terms, and communication to the offeree
D. Legal purpose, definite terms, and options for the offeree - ANSWER-C. Intent
to contract, definite terms, and communication to the offeree
Franklin says to Dorian: "I will sell you 15 dog collars in any color at $10.00 each if
you give me the money by Saturday." Which one of the following statements
constitutes an unconditional and unequivocal acceptance by Dorian?
Select one:
A. I will buy the collars on Sunday when I come over to your house.
B. I hope to have the money this weekend to buy the dog collars you are selling if I
am able to get to the bank.
C. I accept. I will buy 15 dog collars at $8.00 each on Saturday.
