CPCU® 530 Exam Questions

CPCU® 530 Exam Questions

The CPCU® 530 exam is difficult; the concepts are complex and the questions are tricky. You’ll be required you to fully understand and apply every minor detail of the ten CPCU® 530 topics.

The CPCU® 530 exam questions will be formatted in a similar manner to the CPCU® 500 exam questions, but unlike the CPCU® 500, the majority of CPCU® 530 questions are definition based. You might come across a few scenario based questions that require you to understand how to apply the laws in a real life, but most of the questions are definition based. But don’t get too excited, these definition based questions are tricky. You won’t be repeating a definition, instead you’ll have to actually understand the concepts of the definition and memorize the minor details and minor complexities of each legal term. Not to mention, there are hundreds of definitions for you to memorize. We have personally reviewed the content and counted over 600 legal definitions that you need to be familiar with for this exam.

The CPCU® 530 exam consists of 85 multiple choice questions broken up into two sections, part A and part B.

  • Part A: Concept questions – The first section of the exam will be approximately 55 concept questions; these questions will test your understanding of a definition or topic. The multiple-choice answers will generally provide 2 or 3 partially correct answers and one “best” answer.
  • Part B: Case questions – The second section of the exam will be approximately 30 case questions; these questions will require you to apply your knowledge to a specific scenario or event. You will be given a real-life scenario; your job will be to select the best recommendation to solve the given scenario.

Download: Free CPCU® 530 Practice Exam

CPCU® 530 Sample Exam Questions – Part A

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?

  1. Bailee
  2. Bailor
  3. Trustee
  4. Trustor

    

Answer: A – Bailee

A concept question will not directly ask you to define anything, it will instead ask you a question in regards to a definition. This means you must fully understand the definition, fully understand all minor details about the definition and fully understand how this definition is applied, meaning you must know “what is UCC Article 7″ and “what are the parties of a UCC Article 7 contract”.

The answer is A), because a bailee creates this document as a receipt for the goods received. The bailee is the party temporarily holding the goods.

As mentioned in our blog about the CPCU® 530 difficulty, the hardest part of the CPCU® 530 will be memorizing the minor details and complexities of each definition. Notice in this example the party that creates the document of title is a minor detail; you might know the definition of UCC Article 7 but if you don’t know the small detail about who creates the document, you will get this question wrong.

For more concept questions, check out our CPCU® 530 practice exam.

CPCU® 530 Sample Exam Questions – Part B

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?

  1. Dave – the bailee
  2. Amy – the bailee
  3. Dave – the bailor
  4. Dave is not liable for Amy’s clothing

 

Answer: D – Dave is not liable for Amy’s clothing

A case question will give you a scenario like the one seen above; you will be required to select the correct answer based on the given scenario. For a scenario question you must fully understand what is being asked and fully understand how to apply the information you have learned from studying.

In this example you are given a lot of information, some of which is useful to the scenario and some of which is intended to confuse you. In this case you must know:

  1. What type of contract is this
  2. Who are the parties of the contract
  3. Difference between bailee and bailor
  4. What is the extent of liability of each party

 

In this case the answer is D because this is a bailment contract intended for mutual benefit of the bailee and bailor (Amy, the bailor, receives dry cleaning service and Dave, the bailee, receives $40 payment). Under a bailment contract intended for the mutual benefit of both parties, the bailee must exercise reasonable care to prevent damage or loss. 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.

These questions are tricky and will require a bit of critical thinking and question analysis. The easiest way to tackle these questions is to break them down into subsections like we’ve done above. Answer each sub-question to determine the correct answer.

For more scenario based questions, check out our CPCU® 530 practice exam.

Free Practice Exam

Ready to get started studying? We’re here to help (for free). Download our free CPCU® 530 practice exams to get a feel for the type of questions you will see on the exam.

Download: Free CPCU® 530 Practice Exam

More Information

For more information about the CPCU® 530 exam, checkout some of our other free resources:

Disclaimer

Remember, every CPCU® exam is different. No single exam is the same. Be sure to study ALL topics (not just our recommendation). This resource is intended to provide you with a general idea of where your focus should be. Make sure to thoroughly study every topic of this exam.

Difficulty rank, importance rank, and the advice provided in this resource are solely the opinion of AssociatePI. This resource is intended to provide you with a general idea of where your focus should be. Each exam administered by The Institutes is different. AssociatePI is not affiliated with The Institutes or involved in the exam writing process. Please be sure to thoroughly study every chapter and every topic of this course.

CPCU® exams are administered by the American Institute for Chartered Property Casualty Underwriters (“The Institutes”). AssociatePI does not administer the actual exams, we are an independent resource of free content, advice, and study material for professional insurance education. This blog is intended for informational purposes only, to inform prospective students of the benefit of the CPCU® designation.

CPCU® and API are trademarks of the American Institute for Chartered Property Casualty Underwriters (“The Institutes”). AssociatePI LLC is not affiliated with, associated with, endorsed by or otherwise supported or recognized by The Institutes in any way. AssociatePI LLC is not authorized by The Institutes to offer courses, practice examinations, or any other resources related to the Institutes’ designations or other programs.

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