CFP 512 Exam Verified Exam Questions and Answers Latest update 2026/2027

CFP 512 Exam
Verified Exam Questions and Answers Latest update 2026/2027

Question:
1. Peril
Answer:
cause of loss

Question:
2. Hazard
Answer:
is a condition that increases the probability a loss will occur
a physical condition that increases the chance of loss (oily rags left near the

Question:
3. Physical Hazard
Answer:
furance)

Question:
4. Moral Hazard
Answer:
the chance of loss from dishonesty (e.g., a person intentionally causes a loss or
overstates the amount of the loss when a peril occurs)

Question:
5. Morale Hazrd
Answer:
inditterence to loss (due to existence of insurance), which creates carelessness and
increases the chance of loss (e.g., failure to lock car doors)

Question:
6. Financial Risk
Answer:
exposure to a risk that may cause financial loss

Question:
7. Nonfinancial Risk exposure to a risk that does not cause financial loss (e.g., pain and suttering)

, Answer:
are the losses that are caused by factors other than a change in the
economy, risks that are always present (e.g., natural disaster, earthquake, death,

Question:
8. Static Risk
Answer:
or flood), they occur regularly and are insurable

Question:
9. Dynamic Risk
Answer:
are the result of the economy changing (e.g., changes in business cycle, inflation);
insurance typically does not cover these risks

Question:
10. Fundamental
Risk
Answer:
risk that can attect many people at once (earthquake, terrorism)

Question:
11. Particular Risk
Answer:
a risk that is individual in nature or attects a small group of people
loss of income or asset resulting from the loss of ability to earn income caused by

Question:
12. Pure Risk
Answer:
a disability, death, or sickness

Question:
13. Property Risk
Answer:
direct or indirect loss to the property itself from theft or destruction (e.g., fire or
accident)

Question:
14. Liability Risk