7/13/25, 9:17
AM
CPCU 530 EXAM ACTUAL QUESTIONS AND
ANSWERS WITH COMPLETE SOLUTIONS
LATEST UPDATE GRADED A++ 2025/2026
Terms in this set (393)
Cian purchased a house with money loaned
to him by Keithly Mortgage Co. (KMC). Cian
obtained a homeowner policy from Melfor
Insurance—containing a standard mortgage
clause—which covered the house for
damage due to windstorm. A windstorm
destroyed Cian's house three years later.
Which one of the following correctly states
who is entitled to the proceeds payable
under Cian's homeowner policy?
Select one:
A. Cian, because the policy was solely for
his benefitIncorrect. Under the
standard mortgage clause, insurance
policy
proceeds are payable to the mortgagee "as
the mortgagee's interests may appear."
Thus, KMC would receive the proceeds up
to the amount of its loan and Cian would
receive any remaining amount.
B.KMC, as its interests appear.
C. KMC, under the doctrine of equitable
conversion
D.KMC, because the policy was solely for
its benefit
1/
133
,7/13/25, 9:17
AM
An insured is accusing Millstone D. Subpoena duces tecum
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
Some contracts are voidable, D. An innocent or injured
and some agreements are void party.
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.
Physician Betty administered B. An implied-in-law
2/
133
,7/13/25, 9:17
AM
medical services to stroke victim contract.
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.
A contract is made between two A. Executed
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.
3/
133
, 7/13/25, 9:17
AM
B. Exacted
C. Executory
D. Completed
A homeowners A. An executory contract
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.
for the extra two A. Hank breached the contract.
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.
4/
133
AM
CPCU 530 EXAM ACTUAL QUESTIONS AND
ANSWERS WITH COMPLETE SOLUTIONS
LATEST UPDATE GRADED A++ 2025/2026
Terms in this set (393)
Cian purchased a house with money loaned
to him by Keithly Mortgage Co. (KMC). Cian
obtained a homeowner policy from Melfor
Insurance—containing a standard mortgage
clause—which covered the house for
damage due to windstorm. A windstorm
destroyed Cian's house three years later.
Which one of the following correctly states
who is entitled to the proceeds payable
under Cian's homeowner policy?
Select one:
A. Cian, because the policy was solely for
his benefitIncorrect. Under the
standard mortgage clause, insurance
policy
proceeds are payable to the mortgagee "as
the mortgagee's interests may appear."
Thus, KMC would receive the proceeds up
to the amount of its loan and Cian would
receive any remaining amount.
B.KMC, as its interests appear.
C. KMC, under the doctrine of equitable
conversion
D.KMC, because the policy was solely for
its benefit
1/
133
,7/13/25, 9:17
AM
An insured is accusing Millstone D. Subpoena duces tecum
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
Some contracts are voidable, D. An innocent or injured
and some agreements are void party.
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.
Physician Betty administered B. An implied-in-law
2/
133
,7/13/25, 9:17
AM
medical services to stroke victim contract.
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.
A contract is made between two A. Executed
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.
3/
133
, 7/13/25, 9:17
AM
B. Exacted
C. Executory
D. Completed
A homeowners A. An executory contract
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.
for the extra two A. Hank breached the contract.
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.
4/
133
