CPCU 530 Audio Study Guide Narrations, in MP3 file format, expertly narrated by Lisa Tobey; Ray's answers to each assignment's review questions; Ray's definitions for each assignment's key words and other new terms; A sample diagnostic exam with answers and explanations.
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The CPCU ® 530 exam is the third CPCU ® exam in a series of eight required exams to complete your CPCU ® designation. This exam consists of 85 multiple choice questions broken up into two sections, part A and part B.
BDU really prepared me well for the CPCU 530 exam. The videos were very helpful and the test bank questions were also worded very similarly to the actual virtual exam offered by The Institutes. I essentially watched and rewatched the videos (at least the ones that I needed to review) and then took notes in the BDU course text book.
How To Pass CPCU in a Flash – It Doesn’t Take a Genius. When I first started my finance and insurance career, I stumbled upon articles written by the Co-Founders Tony and Carly on LinkedIn, and eventually this blog, that showed a simple system to pass CPCU.With their motivation and advice, I passed all eight tests, in less than 8 months.
Term
Identify the situations in which a contract must be in writing under the statute of frauds.
Definition
The situations in which a contract must be in writing under the statute of frauds are the following:
Contracts for the sale of land or any interest in land
Contracts that cannot be performed within one year
Promises to pay another's debt
Promises in consideration of marriage
Promises by executors of decedents' estates to pay estate debts from executors' own funds
Contracts involving the sale of personal property for $500 or more
Term
Under what circumstances, if any, will an oral executory contract to sell a house and land be legally enforceable?
Definition
When the purchaser of real property has taken possession of the property and made substantial improvements in reliance with an oral contract to sell, most courts enforce the oral contract.
Term
How have courts interpreted the statute of frauds with regard to contracts that cannot be performed in a year?
Definition
Courts have not favored the one-year requirement and generally hold the provision requiring written contracts inapplicable if it is possible to perform the contract within one year.
Term
For sale of personal property under the UCC, what terms must a contract contain to satisfy the statute of frauds?
Definition
A contract for the sale of personal property must contain terms relating to the quantity of goods for sale to satisfy the statute of frauds.
Term
What type of writing is sufficient to satisfy the statute of frauds?
Definition
To satisfy the statute of frauds, a written note or memorandum is sufficient.
Term
What insurance contracts, if any, are subject to the statute of frauds?
Definition
Of the six situations to which the statute of frauds applies, courts have considered applying only two to insurance contracts: (1) policies that are contracts that cannot be performed within one year and (2) policies that are promises to answer for another's debt.
Term
What is the purpose and effect of the parol evidence rule?
Definition
The parol evidence rule, which limits the terms of a contract to those expressed in writing, has the following three purposes: (1) to carry out the parties' presumed intentions, (2) to achieve certainty and finality as to the parties' rights and duties, and (3) to exclude fraudulent and perjured claims.
Term
Describe the exceptions to the parol evidence rule.
Definition
Parol evidence is allowed under the following circumstances:
To prove terms of incomplete contracts
To clarify amiguity in a contract
To support an allegation of fraud, accident, illegality, or mistake relating to a contract
To prove failure of a condition precedent
Term
What is a court's goal in interpreting a contract?
Definition
A court's goal in interpreting a contract is to determine the intentions of the parties.
Term
Describe the effects of treating contracts as divisible.
Definition
The effect of treating contracts as divisible is that the performance of a portion of the contract entitles the performing party to immediate payment.
Term
Under the UCC, how will a court enforce a contract for the sale of goods when the contract does not contain the price of goods sold?
Definition
If the parties fail to state a price for the goods, a court will assume that the contract implies a reasonable price.
Term
What guidelines do courts use to resolve contradictory terms?
Definition
To resolve contradictory terms, the courts apply a system of priorities:
Handwriting prevails over typewriting
Typewriting prevails over printing
Words prevail over figures
Term
How do courts resolve ambiguous contractual terms?
Definition
If a provision can have more than one reasonable meaning, the courts adopt the interpretation least favorable to the party who put the provision into the contract and most favorable for the party who assented to it. If a provision is so amibiguous that its meaning cannot be determined with the usual tools of interpretation, the court can admit evidence from outside the contract.
Term
How does the UCC reconcile conflicts among the following:
a. The express terms of an agreement
b. Trade usage
c. Course of dealing between parties
d. Course of performance between the parties
Definition
The UCC reconciles conflicts by establishing the following priorities when these considerations are in conflict: (a) express terms of the contract, (b) course of performance, (c) course of dealings, and (d) trade usage.
Term
State the types of situations in which rights may not be assigned.
Definition
The following are the most common situations in which contract rights are not assignable:
Legal restrictions
Contract restrictions
Personal contracts
Alteration of performance
Personal satisfaction contracts
Damages for personal injury
Term
Explain why an assignee of a debt should immediately notify the obligor of the assignment.
Definition
The assignee should notify the obligor of the assignment to ensure that the obligor pays the assignee rather than the assignor, thus defeating the original assignor's right to demand the obligor's payment or performance.
Term
In the absence of a provision in the contract to the contrary, may the original parties to a contract cut off the rights of a third-party beneficiary without the consent of the beneficiary?
Definition
The modern legal trend is to permit the original parites in all cases to cut off the beneficiaries' rights unless beneficiaries can prove that their positions have changed materially in reasonable reliance on the contracts.
Term
Why do courts recognize substantial performance that falls short of actual performance?
Definition
Rather than permit the promisee to escape liability completely on the ground of nonperformance, courts consider whether the performance actually given was substantial performance and whether the party performed in good faith.
Term
What is the effect of a contract provision that requires performance by a certain date and states that time is 'of the essence' in this agreement?
Definition
If a contract provision requires performance by a certain date and states that 'time is of the essence in this agreement,' then a court will enforce that provision.
Term
Explain how one agreement can discharge contractual obligations under another agreement.
Definition
Contractual obligations can be discharged by another agreement in accord and satisfaction, the substitution of a different performance for the performance required in a contract.
Term
Identify four changes in circumstances that make performance of a contract impossible.
Definition
The following are four changes in circumstance that make performance of a contract impossible:
(1) Change in law
(2) Death or incapacity
(3) Destruction of subject matter
(4)Other party's act
Term
Discuss the relationship of increased cost to commercial impracticability.
Definition
Increased cost can constitute commercial impracticability if the increase is drastic. However, even in this case, the seller must take commercially reasonable precautions to protect the source of supply.
Term
What is the purpose of the doctrine of anticipatory breach?
Definition
The concept of anticipatory breach developed to avoid 'enforced idleness' on the part of the aggrieved party, who must wait until the time of performance to sue for breach, and to make it unnecessary for that party to tender performance at the time stated in the contract to prove the other party's breach.
Term
What are the effects of a minor breach of contract?
Definition
The effects of a 'minor' breach of contract include the following:
It temporarily suspends any duty of performance by the nonbreaching party that would have arisen in proper performance.
It gives the aggrieved party a basis to sue for damages for the breach - usually an offset to the agreed price - but not for remedies for breach of the entire contract.
Term
When does a court award consequential damages for breach of contract?
Definition
Consequential damages are awarded to the plaintiff only when the defendant was aware of the probably occurrence of the damages.
Term
When does a court award extracontractual damages against insurers?
Definition
Courts award extracontractual damages against insurers on the following grounds:
Breach of the insurer's duty of good faith and fair dealing in insurance contracts
Intentional infliction of emotional duress on the insured by the insurer's extreme and outrageous conduct
Term
Under what circumstances do courts order equitable remedies?
Definition
Courts order equitable remedies under the following circumstances:
When the buyer has accepted the goods
When a carrier has tendered the goods to the buyer if the contract requires the seller to ship them to the buyer
When the seller has delivered the goods to the carrier if the contract provides only for delivery to the carrier and not to the destination
When a third party holds the goods for delivery without moving them
When the buyer has received a document indicating the buyer's right to the goods
When the third party acknowledges the buyer's right to possession
As I was on the flight to the CPCU conferment in Hawaii I closed my eyes and went back to August 27 when I took my first test. It was a long journey and I couldn't have done this without the support from my team at Arch and my wife.
I remember how I was constantly looking for other colleagues or people I knew in the industry to give me hope by telling me that it would be easy. On the contrary; I was constantly hearing people telling me that the tests are tricky and that it takes more reading that they initially anticipated. Some had taken a test more than once. That led me to the idea of writing my journey towards the CPCU to help others who are thinking of doing this but are hesitating to start. If you’ve already completed other similar designations then you know what lies ahead. To me there are 4 equal parts to this; Preface, Prepare/Schedule, Study and Execute. This is actually my first long post on Linkedin so here goes nothing…
1. Preface
During this time you need to prepare yourself and your people around you for what lies ahead. You'll hear different things from CPCU designees but one thing is certain; this designation requires dedication and time. Believe me when you are getting close to the exam day, the exam is the only thing that you’ll have on your mind and people around you might feel neglected. It’s only fair that you tell them in advance that you will be unavailable for a certain period of time.
Before you start your CPCU journey make a note of a regular day and how much time you spend on Social media, texts etc. Also make a note on how much time you spend watching TV. You’ll realize that you easily spend 1-2 hours looking at your phone and another hour watching TV. I decided to delete the Facebook app and end my longtime subscription to Cable TV. I bought an antenna to watch football occasionally and kept my subscription to Netflix. TV would become a luxury I would allow myself only after I’ve read for at least 2 hours per day. This will take some adjusting and as I mentioned earlier the more focused you are on your target ahead the easier it will be.
As with everything in life you get the 80% from 20%. That means that if you study 5 hours per day you’ll get a maximum of 1 productive hour. It is important to know when you are more productive and try to extend that 1 hour of effective studying.
Cpcu 530 Exam Questions
2. Prepare/Schedule
When planning for what lies ahead don’t just say that you’ll study 2 hours a day. Open an excel file and have everything written down. Write down when you will take each exam and how long you’ll need to study for. In order to complete this in less than a year you’ll need to make sure you pass 2-3 exams per exam window. I will gladly share my excel file with you. You can simply send me a note with your email address and I’ll email it to you.
I advise you to register for the exam 2-3 months in advance in order to have a clear target date ahead. You should take the exam day off and inform everyone that you will be unavailable for the whole day. Also if possible take another day off a few days before the exam to study all day. Again you need to keep your phone turned off. Cellphones are a big distraction to everyone. An important thing to remember is that the goal here is to learn and that you should strive to study when you feel at your best. Always remember the 80/20 rule.
Don’t study when you are exhausted unless you have no other choice. And do everything possible to prevent burnout. Sleep at least 7 hours and plan to hit the gym at least twice a week. There will be times when you will feel exhausted. Don’t overdose on caffeine since that won’t help you in the long run. What worked for me is having green smoothies in the morning and eating salads for lunch. You can also snack on fruits and almonds. Try to stay away from excessive sugar. Generally treat your body as a temple at least for these months.
As before, try to focus on the most productive time of the day. If you feel energized and full of motivation then study a little more instead of struggling to catch up when you are exhausted. Some people find it best to study early in the morning and some prefer to study late at night. Since you have to work, study and find time for family and friends it is critical to make the best of the time you have available. What worked for me was getting to work an hour earlier and staying 1 to 2 hours later. I quickly realized that I was able to be more effective when studying at a quiet environment preferably at work. It became increasingly harder to study in the evening after getting back from work. I would end up exhausted trying to keep my eyes open.
3. Study
The question I get from colleagues that are now starting to read for the CPCU is whether they should read the books, take the practice tests or buy Burnham/Big Daddy. I will try and summarize my thoughts on this article and provide more details on the website I’m planning to build. Also if someone wants to learn more I would be more than happy to send them a note.
What you choose is purely based on the type of person you are. I personally read the text book first. I also took an online course and found it very well prepared but didn’t have the time to do it for every course. Also I prefer reading the material to attending a class. If you want to complete this in less than a year you’ll need to take advantage of every downtime. I personally saved some money and bought a tablet. I scanned each book and had it with me 24/7. This can prove handy especially when you’re commuting to work or when you’re lying at the bed before going to sleep. You’ll be amazed how an extra hour of study on a tablet will help you at the end. I love how Burnham is written so I bought all of the material in PDF. Unfortunately the material doesn’t cover everything, contrary to what they say on their website, so you should read the text as well. A PDF is very helpful because you can search for keywords. And you’ll ask me…why do I need to search? Searching is critical when taking the practice tests.
Did I mention that you need to take hundreds of tests before the actual exam? Don’t be fooled; the actual exam won’t have identical questions but if you are anything like me you’ll need to get used to the exam style in order to have any chance of passing. Don’t forget that you need 70% to pass! Your target in the practice exams should be to get over 90%. Each time you finish a chapter you should go back and review all your answers. On the ones that you didn’t know the answer you must refer to the textbook and read the chapter again. This will help you tremendously in being well prepared on the day of exam.
In my opinion you shouldn’t spend 50% of the time doing tests but on the other hand you shouldn’t just read the material/attend classes and only do a few tests. Again the 80/20 rule applies here as well. Plan to spend 80% of your time studying and 20% practicing on sample tests.
4. Execute
No matter how hard you read you still need to execute well. For me it was critical to be in good shape in order to correctly answer as many questions as possible. Earlier in this article I mentioned that you should take an extra day off work to study. Basically I used that day to do tests all day long. Again I always referred back to the text book wherever I felt that I didn’t know the answer. The goal here is to learn and not just pass the exam.
One of the things that I learned from studying for my Bachelor, Masters and CPCU is that no matter how hard you study your mind can simply “shut-down” at the day of the exam. One of my professors told me once that studying too much can sometimes be the root of poor performance. Specifically on the CPCU exam you just need to find the balance where you study enough but you still feel energized to sit in a room with no water in front of a computer and get that 70%.
Each time I walked into the prometric test center I felt my stress level rising. I tried to have nice thoughts and focus my mind on the importance and the benefits of obtaining this designation. Be sure to be very well hydrated before the exam. For some reason, which no one could really explain to me, water is not allowed in the testing room. If you really need to take a break you need to know that the clock is still ticking.
Tips
Everyone wants to know if there is a magic way of passing without reading too much. I hate to disappoint you but there isn't one but even if there was, I would strongly advise you against it. This should be a learning exercise and not a race to pass the exams. Nevertheless there are things that you can do to improve your chances. For example you could start with an easier exam e.g. 500, 520 and build your confidence. You can take the 551, 552 and ARM 56 consequently and leave 530 and 540 for the end. Having covered Property Risk and Liability Risk will help you in passing ARM 56. Also if you are good with math then having the 540 at the end helps since you would’ve covered some of the theory so far and you can focus on the math piece. As you pass each exam and move to the next one you will be more familiar with some of the questions. Specifically on the 540, I strongly advise you to use the tables and a basic calculator instead of a scientific one. If you need one the Texas Instruments BA II Plus Financial Calculator will do the job. If you need more info on this please feel free to send me a note.
I decided to also take the AINS designation at the same time. You can take the AINS 21 & 22 and use CPCU 500 to waive the elective course requirement. If you want to confirm this you can look at the AINS designation program requirements for Program Completion Path C. Also by completing the AINS 21 & 22 you waive CPCU 553. The above applies to those who take the CPCU Commercial Lines Concentration but similar rules apply to the Personal Lines Concentration.
There is one tip that I haven’t seen anywhere which I’ll gladly share with you. Once you enter the room and you are assigned a computer the clock will start ticking from the 2:30 hour mark. You will be presented with the tutorial. Once you complete or skip the tutorial the time remaining will be adjusted to 2 hours. Essentially the system gives you 30 minutes extra time to prepare. Those 30 minutes proved crucial when I took the 540 exam. Before going in I reviewed for the last time the formulas that are not provided during the exam. Then once I walked in I started writing them down. When I was taking the test and couldn’t remember a specific formula I was glad to see it written down on my notepad.
Summary
The CPCU is a great designation. Yes you'll feel tired at times and you'll miss going out but believe me it’s all worth it at the end. And don't see this as a series of exams but as a learning activity and an ongoing opportunity for networking and career advancement. I've only had the chance to go to a few networking events and seminars but I was positively surprised. There are some great individuals out there who put a lot of effort and personal time to organize an event.
Cpcu 530 Review Notes Pdf
As I’m doing my final review before posting this article, I can simply say that the Conferment in Hawaii was simply amazing! It was so good that I’m actually thinking of attending future conferences and paying for them myself. There were over 12,300 attendees and everyone I spoke to had positive things to say. From the actual conferment to the networking events everything was very well planned.
Cpcu 530 Review Notes Samples
Thank you very much for taking the time to read my article. Hopefully I'll soon have time to build a site and share with you more details. I think Linkendin is a great site to post your thoughts/experiences and certainly a great site to exchange ideas. Please feel free to send me any questions and/or suggestions you might have and I’ll do my best to get back to you in a timely manner.
