CPCU 553 Simulated Exam Questions and Answers | 100% Correct | Verified & Updated

CPCU 553 Simulated Exam Questions and Answers | 100% Correct | Verified & Updated Darlene recently gave her son, Fred, a gift of $100,000 to start a new business. Which one of the following correctly describes the federal tax implications of this transaction? - Answer ️️ -A portion of the gift is subject to gift taxation, and Darlene is responsible for any taxes due. The Richleys have an HO-3 policy. A freelance deliveryman cut across the grass, rather than using the walk to the Richleys' front door, and twisted his ankle on the unlevel surface. He had to go to the emergency room and incurred medical expenses of $750. Which one of the following coverages, if any, would pay for the $750 in expenses? - Answer ️️ -Coverage F—Medical Payments to Others James and Jill are at the one step in the personal financial planning process that requires them to identify and evaluate alternatives. It is in this step that which one of the following will be done? - Answer ️️ -Determine potential retirement plans Wesley, applying for a universal life insurance policy, specified an initial death benefit and selected an option that provided for a benefit upon death equal to that specified amount. In doing so, Wesley elected a death benefit option that is referred to as which one of the following? - Answer ️️ -Option A Kevin recently purchased a long-term disability income policy. The policy states that he can renew the coverage until age 65 as long as he is gainfully employed. However, the insurer reserves the right to raise the premium at renewal. This policy is considered - Answer ️️ - Guaranteed renewable. Lori has a company car with insurance coverage provided by her employer and she does not own a car. On occasion, Lori helps her elderly grandmother, Nell. Lori occasionally drives Nell's car to pick up prescriptions. Lori knows that Nell has low limits of liability and is afraid that Nell might allow the insurance on her car to lapse. What coverage can Lori purchase to provide