CFP 512 Testing Questions and Answers
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Terms in this set (249)
According to Medicaid The answer is 60 months. Medicaid law includes a
law, how many months provision defining a look-back period of 60 months
long is the look-back for assets transferred to others (usually adult children)
period for asset transfers designed to impoverish the donor to become eligible
to others? for Medicaid. If a transfer is made within this 60 month
A) look-back period, the applicant is ineligible for
12 months Medicaid benefits for a length of time equal to the
B) amount transferred divided by the monthly cost of
60 months nursing home care for the region.
C)
24 months
D)
36 months
,ADM Inc., a closely held The answer is stock appreciation rights. Stock
business, wishes to appreciation rights (SARs) are similar to phantom
provide Jackie, a key stock plans, except SARs give the
employee, with a plan that employee/executive a choice of when to exercise the
gives her a choice of when right to share in the appreciation of the closely held
to exercise the right to company's stock.
share in the appreciation
of the company's stock.
Therefore, the company
should consider using
A)
junior class shares.
B)
phantom stock.
C)
restricted stock.
D)
stock appreciation rights.
Agents operating under The answer is independent agents. The phrasing in the
the American agency questions defines independent agents who, ideally,
system who represent base their decision on where to place business on the
several insurance needs of the client and the suitability of the insurance
companies and decide on company.
a case-by-case basis
where they will place
business are also known
as which type of insurance
producer?
A)
Brokers
B)
Independent agents
C)
Captive agents
D)
Career agents
,Allison is a key employee The answer is the premiums on $200,000. Because she
for JEM Company. She is is a key employee, and the group term life insurance
offered group term life plan discriminated on her behalf, the entire amount of
insurance for two times the premium paid by JEM attributable to the death
her base salary of benefit would be subject to ordinary income tax.
$100,000, while rank-and-
file employees are only
offered one times their
base salary. Based on this
information, how much of
the premium on her group
term life insurance
coverage must be
included in her taxable
compensation for the
year?
A)
The premium for $50,000
of coverage
B)
The premium for $150,000
of coverage
C)
The premium on $200,000
of coverage
D)
$0
, All of the following are The answer is talking. Talking is not an ADL. The other
considered activities of activities are all ADLs under HIPAA.
daily living (ADLs) under
the Health Insurance
Portability and
Accountability Act
(HIPAA) except
A)
maintaining continence.
B)
transferring from bed to
chair.
C)
talking.
D)
eating.
All of the following are Collision is defined as "the upset of your covered auto
covered under a personal or its impact with another vehicle or object." Other
automobile policy's other- examples of losses covered under other-than-
than-collision collision coverage include vandalism, hail, and
(comprehensive) coverage breakage of glass.
except
A)
theft.
B)
earthquake.
C)
flood.
D)
colliding with a mailbox.
Save
Terms in this set (249)
According to Medicaid The answer is 60 months. Medicaid law includes a
law, how many months provision defining a look-back period of 60 months
long is the look-back for assets transferred to others (usually adult children)
period for asset transfers designed to impoverish the donor to become eligible
to others? for Medicaid. If a transfer is made within this 60 month
A) look-back period, the applicant is ineligible for
12 months Medicaid benefits for a length of time equal to the
B) amount transferred divided by the monthly cost of
60 months nursing home care for the region.
C)
24 months
D)
36 months
,ADM Inc., a closely held The answer is stock appreciation rights. Stock
business, wishes to appreciation rights (SARs) are similar to phantom
provide Jackie, a key stock plans, except SARs give the
employee, with a plan that employee/executive a choice of when to exercise the
gives her a choice of when right to share in the appreciation of the closely held
to exercise the right to company's stock.
share in the appreciation
of the company's stock.
Therefore, the company
should consider using
A)
junior class shares.
B)
phantom stock.
C)
restricted stock.
D)
stock appreciation rights.
Agents operating under The answer is independent agents. The phrasing in the
the American agency questions defines independent agents who, ideally,
system who represent base their decision on where to place business on the
several insurance needs of the client and the suitability of the insurance
companies and decide on company.
a case-by-case basis
where they will place
business are also known
as which type of insurance
producer?
A)
Brokers
B)
Independent agents
C)
Captive agents
D)
Career agents
,Allison is a key employee The answer is the premiums on $200,000. Because she
for JEM Company. She is is a key employee, and the group term life insurance
offered group term life plan discriminated on her behalf, the entire amount of
insurance for two times the premium paid by JEM attributable to the death
her base salary of benefit would be subject to ordinary income tax.
$100,000, while rank-and-
file employees are only
offered one times their
base salary. Based on this
information, how much of
the premium on her group
term life insurance
coverage must be
included in her taxable
compensation for the
year?
A)
The premium for $50,000
of coverage
B)
The premium for $150,000
of coverage
C)
The premium on $200,000
of coverage
D)
$0
, All of the following are The answer is talking. Talking is not an ADL. The other
considered activities of activities are all ADLs under HIPAA.
daily living (ADLs) under
the Health Insurance
Portability and
Accountability Act
(HIPAA) except
A)
maintaining continence.
B)
transferring from bed to
chair.
C)
talking.
D)
eating.
All of the following are Collision is defined as "the upset of your covered auto
covered under a personal or its impact with another vehicle or object." Other
automobile policy's other- examples of losses covered under other-than-
than-collision collision coverage include vandalism, hail, and
(comprehensive) coverage breakage of glass.
except
A)
theft.
B)
earthquake.
C)
flood.
D)
colliding with a mailbox.
