CFP Insurance Planning ACTUAL
Questions and CORRECT Answers
Insurable risks must be CHAD.. - CORRECT ANSWER Catastrophic, Homogenous
exposure, Accidental, and Determinable
To be a legal contract the contract must have COALL.. - CORRECT ANSWER Competent
parties, Offer & Acceptance, Legal consideration, and Lawful purpose
Void means what - CORRECT ANSWER not valid
Voidable means.. - CORRECT ANSWER Valid but allows for party to cancel the contract
Insurance contracts are UCAA. - CORRECT ANSWER Unilateral
Conditional
Aleatory
Adhesion
Adhesion means.. - CORRECT ANSWER Take it or leave it. Zero negotiations over terms
or conditions.
Aleatory means.. - CORRECT ANSWER Money exchanged may be unequal. Ex: small
premium w/large DB
Unilateral means.. - CORRECT ANSWER One promise is made by insurer and that is to
pay in event of a loss
Conditional means... - CORRECT ANSWER insured must abide by terms / conditions of
the contract
, Insurance agents have different types of authority.. - CORRECT ANSWER true
Express authority means.. - CORRECT ANSWER authority given through an agency or
written contract
Implied authority means... - CORRECT ANSWER the public receives knowledge of
authority
Ex: actual delivering of insurance contract and accepting premium
Insurance regulation is done by who? - CORRECT ANSWER the states
6 steps in Risk management.. - CORRECT ANSWER DIE-DIE; Determine risks, Identify
risks, Evaluate the identified risks, Determine alternatives, Implement program, Evaluate
program
5 dividend options in whole life policies.. - CORRECT ANSWER CRAPO; Cash option,
reduce premiums, accumulate @ interest, Paid-up additions, and Term
Cash Surrender value and Reduce paid up insurance are types of ... - CORRECT
ANSWER non-forfeiture options
Annuities before 1982 receive what type of tax treatment? and after 1982? - CORRECT
ANSWER FIFO; LIFO
What are the 4 major classes of health insurance? - CORRECT ANSWER Hospital
insurance
Surgical insurance
Physicians insurance
Major medical
Questions and CORRECT Answers
Insurable risks must be CHAD.. - CORRECT ANSWER Catastrophic, Homogenous
exposure, Accidental, and Determinable
To be a legal contract the contract must have COALL.. - CORRECT ANSWER Competent
parties, Offer & Acceptance, Legal consideration, and Lawful purpose
Void means what - CORRECT ANSWER not valid
Voidable means.. - CORRECT ANSWER Valid but allows for party to cancel the contract
Insurance contracts are UCAA. - CORRECT ANSWER Unilateral
Conditional
Aleatory
Adhesion
Adhesion means.. - CORRECT ANSWER Take it or leave it. Zero negotiations over terms
or conditions.
Aleatory means.. - CORRECT ANSWER Money exchanged may be unequal. Ex: small
premium w/large DB
Unilateral means.. - CORRECT ANSWER One promise is made by insurer and that is to
pay in event of a loss
Conditional means... - CORRECT ANSWER insured must abide by terms / conditions of
the contract
, Insurance agents have different types of authority.. - CORRECT ANSWER true
Express authority means.. - CORRECT ANSWER authority given through an agency or
written contract
Implied authority means... - CORRECT ANSWER the public receives knowledge of
authority
Ex: actual delivering of insurance contract and accepting premium
Insurance regulation is done by who? - CORRECT ANSWER the states
6 steps in Risk management.. - CORRECT ANSWER DIE-DIE; Determine risks, Identify
risks, Evaluate the identified risks, Determine alternatives, Implement program, Evaluate
program
5 dividend options in whole life policies.. - CORRECT ANSWER CRAPO; Cash option,
reduce premiums, accumulate @ interest, Paid-up additions, and Term
Cash Surrender value and Reduce paid up insurance are types of ... - CORRECT
ANSWER non-forfeiture options
Annuities before 1982 receive what type of tax treatment? and after 1982? - CORRECT
ANSWER FIFO; LIFO
What are the 4 major classes of health insurance? - CORRECT ANSWER Hospital
insurance
Surgical insurance
Physicians insurance
Major medical
