100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
CFP 512 Practice Exam Questions with Correct Answers $12.49   Add to cart

Exam (elaborations)

CFP 512 Practice Exam Questions with Correct Answers

 5 views  0 purchase
  • Course
  • 2024/2025
  • Institution
  • 2024/2025

CFP 512 Practice Exam Questions with Correct Answers What is the minimum for the deductible on a high deductible plan for an individual and a family? - Answer-At least $1,200 for an individual and $2,400 for a family Which of the following refers to the process of evaluating and classifying the...

[Show more]

Preview 4 out of 88  pages

  • October 15, 2024
  • 88
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • 2024/2025
  • 2024/2025
avatar-seller
Emillect
EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED. FIRST PUBLISH OCTOBER 2024.




CFP 512 Practice Exam Questions with
Correct Answers

What is the minimum for the deductible on a high deductible plan for an individual and a

family? - Answer✔✔-At least $1,200 for an individual and $2,400 for a family


Which of the following refers to the process of evaluating and classifying the risk level of

applicants for insurance?




A)


Underwriting


B)


Actuarial science


C)


Adverse selection


D)


Utilization review - Answer✔✔-A)


Underwriting


Page 1/88

,EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED. FIRST PUBLISH OCTOBER 2024.



Choose the method of risk management that is implemented by a homeowner who installs

storm shutters.




A)


Reduction


B)


Retention


C)


Transfer


D)


Avoidance - Answer✔✔-A)


Reduction


You have a meeting with Oscar, age 26, and his wife Judith, age 25, this afternoon to review

their risk management plan. They have two children, two cars, a home, and a boat. Oscar works

at the local bank, and Judith works at an engineering firm. Identify the CORRECT statement(s)

regarding their risk management plan.




They have a limited amount of liability exposure.


Page 2/88

,EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED. FIRST PUBLISH OCTOBER 2024.



They have a higher probability of becoming disabled versus experiencing premature death.


Having collision insurance on their cars is more important than liability coverage.


Long-term care insurance should not be a current priority within their risk management plan.




A)


I, II, and III


B)


II and IV


C)


IV only


D)


II, III, and IV - Answer✔✔-B)


II and IV




Oscar and Judith have unlimited liability exposure. A car accident could lead to an unlimited

amount of liability depending on the circumstances, as well as the possibility of negligence

occurring on their property. There is a higher probability of becoming disabled than of

experiencing premature death at their ages, and it is much more important to have liability


Page 3/88

, EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED. FIRST PUBLISH OCTOBER 2024.



insurance on a vehicle than collision coverage. Liability claims may be much higher than any

type of collision damage to a vehicle. Both Oscar and Judith are too young to consider long-term

care insurance at this time.


Preston called Joanna, an insurance broker, to obtain coverage on his 30-foot sailboat. Joanna

told him to send in a binder premium of $75. She told him that by doing so, he would be

covered and that he should go ahead and enjoy the boat. Joanna submitted an application for

insurance to Boater's Insurance Corp. for issuance of the policy. Boater's declined the coverage.

The day Joanna learned this, Preston called and told her a sudden wind caused him to lose

control of his boat. He then smashed into another sailboat, causing substantial damage to both

boats.




Who will be responsible for the damages?




A)


Boater's Insurance Corp. will have to pay the damages since it did not notify Preston that he was

not covered.


B)


Boater's will have to pay since Joanna collected a premium from Preston.


C)



Page 4/88

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller Emillect. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $12.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

71184 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$12.49
  • (0)
  Add to cart