7/13/25, 9:23
AM
CPCU 530 EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS VERIFIED LATEST UPDATE
GRADED A++ RELEASED 2025
Terms in this set (135)
A promise at the The insurer's pledge to pay its share
heart of nearly of covered losses in exchange for a
every insurance policy's premium
product and
transaction
Contract a legally enforceable agreement between
two or more parties
- agreement (offer and acceptance)
- capacity/competence of all involved
parties
1/
35
,7/13/25, 9:23
AM
- mutual assent
- consideration
Elements of a
legally binding - legal purpose
contract - proper, legally required form
Offeror The party to a contract who promises
to give something in return for a
promise or an act by another
party.
offeree The party to a contract who makes a
promise or acts in return for
something offered by another
party.
Must have a:
- valid offer - intent to contract, definite
Valid agreement terms, communication to the offeree
- valid acceptance - acceptance by
the offeree, unconditional and
2/
35
,7/13/25, 9:23
AM
unequivocal acceptance, offeree
communication their
acceptance
assent to express agreement
- fraud (could sue)
- mistake
5 circumstances - duress
under which
- undue influence
genuine asset to a
- innocent misrepresentation (no monetary
contract may be
damages awarded)
considered
lacking
consideration Something of value or bargained for and
exchanged by the parties to a contract.
To make a promise enforceable, it can be:
- a return promise
Element of - an act performed
3/
35
, 7/13/25, 9:23
AM
Consideration - giving up a legal right
- bilateral and unilateral
- executed and executory
types of contracts - express and implied
- voidable and void
bilateral contract A contract in which each party promises to
do something.
unilateral contract A contract in which only one party
makes a promise or undertakes the
requested performance.
executed contract A contract that has been completely
performed by both parties
- requires nothing more of either party to
be fulfilled
executory contract A contract that has not been completely
performed by one or both of the parties.
4/
35
AM
CPCU 530 EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS VERIFIED LATEST UPDATE
GRADED A++ RELEASED 2025
Terms in this set (135)
A promise at the The insurer's pledge to pay its share
heart of nearly of covered losses in exchange for a
every insurance policy's premium
product and
transaction
Contract a legally enforceable agreement between
two or more parties
- agreement (offer and acceptance)
- capacity/competence of all involved
parties
1/
35
,7/13/25, 9:23
AM
- mutual assent
- consideration
Elements of a
legally binding - legal purpose
contract - proper, legally required form
Offeror The party to a contract who promises
to give something in return for a
promise or an act by another
party.
offeree The party to a contract who makes a
promise or acts in return for
something offered by another
party.
Must have a:
- valid offer - intent to contract, definite
Valid agreement terms, communication to the offeree
- valid acceptance - acceptance by
the offeree, unconditional and
2/
35
,7/13/25, 9:23
AM
unequivocal acceptance, offeree
communication their
acceptance
assent to express agreement
- fraud (could sue)
- mistake
5 circumstances - duress
under which
- undue influence
genuine asset to a
- innocent misrepresentation (no monetary
contract may be
damages awarded)
considered
lacking
consideration Something of value or bargained for and
exchanged by the parties to a contract.
To make a promise enforceable, it can be:
- a return promise
Element of - an act performed
3/
35
, 7/13/25, 9:23
AM
Consideration - giving up a legal right
- bilateral and unilateral
- executed and executory
types of contracts - express and implied
- voidable and void
bilateral contract A contract in which each party promises to
do something.
unilateral contract A contract in which only one party
makes a promise or undertakes the
requested performance.
executed contract A contract that has been completely
performed by both parties
- requires nothing more of either party to
be fulfilled
executory contract A contract that has not been completely
performed by one or both of the parties.
4/
35
