CFP 512 Exam Questions and Answers
Save
Terms in this set (166)
a provision under the Internal Revenue Code (IRC)
that gives an employee, or startup founder, the option
83(b) election
to pay taxes on the total fair market value of restricted
stock at the time of granting.
A type of liability that occurs due to extremely
dangerous operations, such as the use of explosives
Absolute Liability
or working at extreme heights or having aggressive
animals. Also known as strict liability.
Terminally Ill can use the finds however they choose.
Accelerated Death Benefit
(terminally Ill vs. Critically
Chronically Ill must use funds towards necessary care
Ill)
only. Up to the IRS per dime limitation amount.
ACV is replacement cost minus depreciation. This is
not good for older items.
Actual Cash Value (ACV)
bs replacement Cost A replacement cost policy will buy you a new
replacement when item is damaged. Replacement
Cost policy's have higher premiums.
A high-risk person benefits more from insurance, so is
Adverse Selection
more likely to purchase it.
Age for asset Until approx age 45. Debt is usually high and cash
accumulation phase flow and net worth is generally low.
, Approx age 45 to 60 (or immediately preceding
Age for Conservation or clients planned retirement date.). Cash flow and Net
Protection phase Worth are increasing, and debt is decreasing. Start
looking at long term care insurance.
Age for distribution or Age 60, (or planned retirement date) until the date of
gifting phase death.
a contract where the values exchanged may not be
Aleatory Contract equal but depend on an uncertain event. Outcome is
controlled by chance.
The appearance or the assumption of authority based
Apparent Authority on the actions, words, or deeds of the principal or
because of circumstances the principal created.
Yes, since life insurance is an Employee Welfare
Benefit plan. They are subject to certain requirements
of ERISA.
Welfare Benefit Plans (group life and health):
- Must comply with: Reporting and Disclosure;
- Must comply with: Fiduciary Responsibilities
- Exempt from: Participation, Vesting, and Funding
Are Group Life Insurance - Exempt from: Plan Termination Insurance
plans subject to ERISA?
The only group life plans that are fully exempt from
ERISA are voluntary plans in which individual
employees pay the full premium and the employer's
role is limited to administrative functions.
Also governmental, church and UnFunded excess
benefit plan are given full ERISA EXEMPTION.
Are group life policy's Employee pays with after tax dollars unless coverage
paid with pre tax or after is part of a cafeteria plan.
tax dollars
, Are group term life Only if the face values of the life policy does not
benefits deductible by the exceed $50,000
employer and excluded
from employee's taxable
income?
Any arrangement by which funds are attributed to a
different tree from that in which they grew will not be
Assignment of Income recognized for tax purposes.
Doctrine But, as long as a taxpayer retains control over the
tree, they will be taxed on its fruit, even though they
have assigned all rights to the fruit to another.
A dangerous place, condition, or object that is
Attractive Nuisance
particularly attractive to children
At what percentage of 100% of the replacement cost value
coverage should a
homeowner have? What is Replacement Cost x coinsurance % = minimum
the Minimum Required required insurance
Insurance.
Average length of stay for Men = 2.2 years
men and women in LTC. Women = 3.7 years
difference between the fair market value of stock and
bargain element
the exercise price on the exercise date
When either party to the contract can enforce the
Bilateral Contract
contract in a court of law.
Individuals who are licensed with and represent many
Brokers
insurers.
Save
Terms in this set (166)
a provision under the Internal Revenue Code (IRC)
that gives an employee, or startup founder, the option
83(b) election
to pay taxes on the total fair market value of restricted
stock at the time of granting.
A type of liability that occurs due to extremely
dangerous operations, such as the use of explosives
Absolute Liability
or working at extreme heights or having aggressive
animals. Also known as strict liability.
Terminally Ill can use the finds however they choose.
Accelerated Death Benefit
(terminally Ill vs. Critically
Chronically Ill must use funds towards necessary care
Ill)
only. Up to the IRS per dime limitation amount.
ACV is replacement cost minus depreciation. This is
not good for older items.
Actual Cash Value (ACV)
bs replacement Cost A replacement cost policy will buy you a new
replacement when item is damaged. Replacement
Cost policy's have higher premiums.
A high-risk person benefits more from insurance, so is
Adverse Selection
more likely to purchase it.
Age for asset Until approx age 45. Debt is usually high and cash
accumulation phase flow and net worth is generally low.
, Approx age 45 to 60 (or immediately preceding
Age for Conservation or clients planned retirement date.). Cash flow and Net
Protection phase Worth are increasing, and debt is decreasing. Start
looking at long term care insurance.
Age for distribution or Age 60, (or planned retirement date) until the date of
gifting phase death.
a contract where the values exchanged may not be
Aleatory Contract equal but depend on an uncertain event. Outcome is
controlled by chance.
The appearance or the assumption of authority based
Apparent Authority on the actions, words, or deeds of the principal or
because of circumstances the principal created.
Yes, since life insurance is an Employee Welfare
Benefit plan. They are subject to certain requirements
of ERISA.
Welfare Benefit Plans (group life and health):
- Must comply with: Reporting and Disclosure;
- Must comply with: Fiduciary Responsibilities
- Exempt from: Participation, Vesting, and Funding
Are Group Life Insurance - Exempt from: Plan Termination Insurance
plans subject to ERISA?
The only group life plans that are fully exempt from
ERISA are voluntary plans in which individual
employees pay the full premium and the employer's
role is limited to administrative functions.
Also governmental, church and UnFunded excess
benefit plan are given full ERISA EXEMPTION.
Are group life policy's Employee pays with after tax dollars unless coverage
paid with pre tax or after is part of a cafeteria plan.
tax dollars
, Are group term life Only if the face values of the life policy does not
benefits deductible by the exceed $50,000
employer and excluded
from employee's taxable
income?
Any arrangement by which funds are attributed to a
different tree from that in which they grew will not be
Assignment of Income recognized for tax purposes.
Doctrine But, as long as a taxpayer retains control over the
tree, they will be taxed on its fruit, even though they
have assigned all rights to the fruit to another.
A dangerous place, condition, or object that is
Attractive Nuisance
particularly attractive to children
At what percentage of 100% of the replacement cost value
coverage should a
homeowner have? What is Replacement Cost x coinsurance % = minimum
the Minimum Required required insurance
Insurance.
Average length of stay for Men = 2.2 years
men and women in LTC. Women = 3.7 years
difference between the fair market value of stock and
bargain element
the exercise price on the exercise date
When either party to the contract can enforce the
Bilateral Contract
contract in a court of law.
Individuals who are licensed with and represent many
Brokers
insurers.
