CFP 512 MODULE 1 EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS VERIFIED

CFP 512 MODULE 1 EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS VERIFIED Peril cause of loss risk The possibility of a financial loss hazards increases the potential for that loss static risks factors other than changes in the economy dynamic risks results of changes in the economy fundamental risks affect a large group of people particular risks affect individuals or small groups pure risk involves only the chance of loss or no loss speculative risk involves both the chance of loss and gain What falls under risk control? avoidance and reduction what falls under risk financing? retention and transfer risk control risk management technique that seeks to minimize the risk of loss risk financing pays the costs of losses incurred Actual Cash Value (ACV) replacement costs minus depreciation subrogation right of company to recover payment social insurance mandatory insurance issued by the government public insurance enhance public trust in financial institutions career agents