1. Consumer Protection Laws—Activities 1
CPCU 530 Study Aid 4
Business Law for the Insurance Professional
Donna M. Kesot, CPCU & AICPCU
February 27, 2013
Copyright Donna M. Kesot, CPCU
Copyright American Institute For Chartered Property Casualty Underwriters

2. Bailee’s and Bailor’s Rights and Duties—Activities 2
Chapter 5
Educational Objective (EO) -- Ownership and Possession of
Personal Property
Explain how a person can acquire ownership of personal property in each of these ways:
Creation
Accession
Confusion
Gifts
Bailments
Developing a Scenario to Explain Ownership and Possession of Personal Property
Develop a scenario that illustrates how someone acquires legal ownership, using specific
examples of the method assigned to them.
Describe protected rights, as a result of acquiring that type of ownership.
Educational Objective (EO) -- Bailee’s and Bailor’s Rights and
Duties
Describe the respective rights and duties of a bailee and a bailor.
Copyright Donna M. Kesot, CPCU
Copyright American Institute For Chartered Property Casualty Underwriters

3. Bailee’s and Bailor’s Rights and Duties—Activities 3
Quiz Yourself (cover Answer column and see how you do)
Questions Rights & Duties of Answers
Bailees&Bailors
1. Who is a bailee?
2. What is bailment?
3. Who is a bailor?
4. Explain how sole and mutual
benefit affect the bailee’s rights.
5. Describe the role of compensation
in a bailment.
6. What is a lien? What is a
possessory lien?
7. Describe the bailee’s duties.
8. Explain why and how the bailee
has an insurable interest in the
goods.
9. Describe possession and ownership
of goods as it relates to the bailee.
10. Describe the bailor’s rights and
duties.
11. When is a bailor responsible for a
bailee’s negligent use of property?
Copyright Donna M. Kesot, CPCU
Copyright American Institute For Chartered Property Casualty Underwriters

4. Land Use Restrictions—Activities 4
Educational Objective (EO) -- Real Property Ownership
Describe these types of real property ownership:
Fee simple estate
Life estate
Joint tenancy
Tenancy by the entirety
Tenancy in common
Community property
Cooperative ownership
Condominium ownership
Quiz Yourself (cover Answer column and see how you do)
Question: Describing Real Property What is…
Owernership
1. A full ownership interest in property with
the unconditional right to dispose of it.
2. Tenancy
3. Joint tenancy
4. A joint tenancy between husband and wife.
5. Ownership, usually of real property such as
an apartment building, by a corporation,
the stockholders of which receive long-
term proprietary leases to a portion of the
property and a proportional vote in its
affairs based on the number of shares
owned.
6. Condominium
7. Community property
8. A concurrent ownership of property, in
equal or unequal shares, by two or more
joint tenants who lack survivorship rights.
9. Life estate
Copyright Donna M. Kesot, CPCU
Copyright American Institute For Chartered Property Casualty Underwriters

5. Land Use Restrictions—Activities 5
Educational Objective (EO) -- Real Property Sales
Describe real property sales in terms of the following (using key elements):
The required elements of a contract of sale
The types of deeds and the characteristics of each
The requirements that deeds must meet
How and why deeds are recorded
Educational Objective (EO) -- Real Property Security Interests
and Liens
Describe the purpose and operation of each of the following:
Mortgages
Trust deeds
Land contracts
Mechanic’s liens
Can you summarize (briefly) the purpose and function of each?
Copyright Donna M. Kesot, CPCU
Copyright American Institute For Chartered Property Casualty Underwriters

6. Land Use Restrictions—Activities 6
Educational Objective (EO) -- Incidental Real Property Rights
Describe each of the following incidental real property rights:
Adverse possession
Rights to whatever is under, above, or on the land’s surface
Rights to lateral and subjacent support
Water rights
Ownership of fixtures
Can you develop a scenario that centers around one or more of the incidental real property rights
described in the content?
The scenario should involve a character who either has or does not have those incidental
property rights.
Educational Objective (EO) -- Land Use Restrictions
Describe the following types of land use restrictions:
Incorporeal interests
Licenses
Government controls.
Quiz Yourself (cover Answer column and see how you do)
What is…
Describing Land Use Restrictions
1. A nonmaterial interest in real property.
2. Easement
3. A government’s regulation of building
construction and occupancy and of land
use according to a comprehensive plan.
4. Profits à prendre
5. License
6. A legal procedure by which a government
body seeks a court’s permission to seize
private property by eminent domain.
7. Exclusionary zoning
Copyright Donna M. Kesot, CPCU
Copyright American Institute For Chartered Property Casualty Underwriters

7. Land Use Restrictions—Activities 7
8. The right of a government to seize private
property for public use.
9. A provision in a general zoning plan that
assigns a different use for a small area of
land than that of the surrounding area.
10. Variance
11. An exception to the application of a zoning
ordinance for lots that, because of size,
topography, or other physical limitations,
do not conform to the ordinance
requirements for the zone.
12. Nonconforming use
13. A land use explicitly permitted by a zoning
ordinance but subject to certain limitations.
14. Local ordinances or state statutes that
regulate the construction of buildings
within a municipality, county, or state.
15. Use variance
Copyright Donna M. Kesot, CPCU
Copyright American Institute For Chartered Property Casualty Underwriters

8. Damages in Tort Suits—Activities 8
Educational Objective (EO) -- The Landlord and Tenant
Relationship
Describe the landlord-tenant relationship in terms of the following:
The three types of landlord-tenant estates
Landlord’s rights and duties
Landlord’s remedies
Tenant’s rights and duties
________________________________________________________________________
A. What are the three types of landlord-tenant estates? What are the main distinctions between
them?
B. What rights and duties does a landlord have?
C. What legal actions can a landlord take in response to a tenant breaching a lease agreement?
D. On the other hand, what rights and duties are given to a tenant?
E. When would there be exceptions, for either party?
Educational Objective (EO) - Products Liability
Describe these causes of action for products liability and the possible defenses to them:
Misrepresentation
Breach of warranty
Strict liability and negligence
Describing Causes of Action and Defenses in Products Liability
Most products liability suits are based on one or more of these legal principles:
Misrepresentation
Breach of warranty
Strict liability and negligence
Describe each of these legal principles and include definitions of key terms where applicable.
Describe the types of product defects typically cited in product liability causes of actions, which
parties may be liable, and which parties may be protected.
What are the types of defenses that may be used in product liability. Include definitions of key
terms, where applicable.
Copyright Donna M. Kesot, CPCU
Copyright American Institute For Chartered Property Casualty Underwriters

9. Damages in Tort Suits—Activities 9
Educational Objective (EO) -- Damages In Tort Suits
Describe the types of damages a court can award a plaintiff for a tort claim.
Quiz Yourself (cover Answer column and see how you do)
Damages in Tort Suits What is/are…?
1. Emotional distress
2. A form of compensatory damages that
awards a sum of money for specific,
identifiable expenses associated with the
injured person's loss, such as medical
expenses or lost wages.
3. Exemplary damages
4. A payment awarded by a court to punish a
defendant for a reckless, malicious, or
deceitful act or to deter similar conduct;
need not bear any relationship to a party's
actual damages.
5. Pain and suffering
6. The circumstances under which a court can
award punitive damages.
7. A monetary award to compensate a victim
for losses, such as pain and suffering, that
do not involve specific measurable
expenses.
8. Wrongful death action
9. The compensatory damages to
compensate a plaintiff for any loss of
income directly related to a tort.
10. A statute that preserves the right of a
person’s estate to recover damages that
person sustained between the time of
injury and death.
11. Three factors considered in assessing
punitive damages.
12. A payment awarded by a court to
indemnify a victim for actual harm.
Copyright Donna M. Kesot, CPCU
Copyright American Institute For Chartered Property Casualty Underwriters

10. Damages in Tort Suits—Activities 10
Educational Objective (EO) -- Liability Concepts Affecting
Tort Claims
Explain how these concepts can affect a tort claim:
Joint tortfeasor's liability
Expanded liability concepts
Vicarious liability
Good Samaritan issues
Class actions and mass tort litigation
Copyright Donna M. Kesot, CPCU
Copyright American Institute For Chartered Property Casualty Underwriters