CFP 512

CFP - FP512 - MODULE 2 KEY TERMS EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS VERIFIED GRADED A++ personal liability umbrella policy (PLUP) Coverage designed to provide a catastrophic layer of liability coverage on top of the individual's homeowners and automobile insurance policies actual cash value (ACV) replacement cost minus depreciation assessed value Value taxing authority places on the property and upon which they base property taxes off of basic commercial general liabi...

CFP 512. 2023. MODULE 5- EMPLOYEE GROUP BENEFITS EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS VERIFIED GRADED A++ Name two advantages of group term for the employee. 1. No medical exam required. 2. First $50,000 are tax-free. Common formulas for group life insurance coverage- there are 3. 1. A percentage or multiple of earnings 2. Coverage based on years of service 3. Coverage limits for different employee classes Section 79 IRC section that applies to the qualifying status of g...

CFP512: RISK MANAGEMENT, INSURANCE, AND EMPLOYEE BENEFITS PLANNING EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS VERIFIED GRADED A++ Taxation on life insurance transfer due to divorce 2018 & Before: premiums deductible to payor, taxable to payee 2019+: premiums NOT deductible to payor or taxable to payee Investment in life insurance contract = premiums - dividends - loans/withdrawals Guaranteed lifetime withdrawal benefit (GLWB) can withdraw certain % of contract each year for life...

CFP EXAM -- FP512 QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS VERIFIED GRADED A++ Insurance * A device used to manage risk by having a large pool of people share in the financial losses suffered by members of the pool * Risk is transferred to an insurance company * The more group members, the greater the probability that an actual loss will equal the expected loss Risk * A condition where there is a possibility of an adverse deviation from the desired outcome * Outcome is indeterminat...

CFP 512. MODULE 4 EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS VERIFIED GRADED A++ Name the three Federal Acts/Government Mandates 1. COBRA 2. HIPAA 3. PPACA Health Insurance Portability and Accountability Act (HIPAA) Does not enforce pre-existing conditions IF - an employee had a prior employers health plan for at least 12 months - less than 63 days have passed since they lost coverage How does HIPAA define a pre-existing condition Any medical condition that was treated/diagnose...

CFP FP512 EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS VERIFIED ADB rider (accidental death benefit) commonly less than the basic death benefit amount adjustable life Life insurance which permits changes in the face amount, premium amount, period of protection, and the duration of the premium payment period. - encompasses aspects of Universal, Term and whole Life cash option cost of living rider declarations page decreasing term insurance deferred annuity deferred income annuity...

CFP 512 - MODULE 3 EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS VERIFIED GRADED A++ Term life insurance Renewable term policies generally have a guaranteed maximum premium and are renewable for a specified period of time reentry term policies permit the insured to be underwritten every 5 years or so. decreasing term insurance form of term life insurance in which the premium remains level but the amount of death benefit decreases. whole life insurance provides a guaranteed death b...

CFP 512 UNIT 3 EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS Whole Life or Universal Life insurance Low to moderat risk tolerance level Variable Life or Variable universal life Moderate to high level risk Age and health factors don't preclude the availability o particular product Unless of a advanced age and then its more expensive Annual Renewable Term Insurance Term coverage that provides a level face amount that renews annually. This type of coverage is guaranteed renewable an...

CFP 512 4 EXTRA QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS Medicaid covers most health care costs, including hospital and doctor bills and custodial care in a nursing home. Medicaid is also required by law to pay Medicare premiums, deductibles, and coinsurance for Medicare-eligible Medicaid patients provides coverage for long-term care (LTC)—including nursing home care Medicaid law includes a provision defining a lookback period of 60 months for assets transferred to others Recall...

CFP #512 - MODULE #1 (TERMINOLOGY) EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS VERIFIED risk the possibility of a loss—or a negative deviation from a desired outcome (EX: possible loss to your house) peril the cause of a loss from risk (EX: hurricane, tornado, flood) hazard increases the potential for loss (EX: gas can sitting next to space heater) Static risks such as earthquakes and floods, result from factors other than changes in the economy. They tend to occur with regulari...