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CFP INSURANCE PLANNING QUESTIONS
WITH DETAILED VERIFIED ANSWERS
Insurable risks must be CHAD.. Ans: Catastrophic, Homogenous
exposure, Accidental, and Determinable
To be a legal contract the contract must have COALL.. Ans: Competent
parties, Offer & Acceptance, Legal consideration, and Lawful purpose
Void means what Ans: not valid
Voidable means.. Ans: Valid but allows for party to cancel the contract
Insurance contracts are UCAA. Ans: Unilateral
Conditional
Aleatory
Adhesion
Adhesion means.. Ans: Take it or leave it. Zero negotiations over terms
or conditions.
Aleatory means.. Ans: Money exchanged may be unequal. Ex: small
premium w/large DB
Unilateral means.. Ans: One promise is made by insurer and that is to
pay in event of a loss
Conditional means... Ans: insured must abide by terms / conditions of
the contract
Insurance agents have different types of authority.. Ans: true
Express authority means.. Ans: authority given through an agency or
written contract
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Implied authority means... Ans: the public receives knowledge of
authority
Ex: actual delivering of insurance contract and accepting premium
Insurance regulation is done by who? Ans: the states
6 steps in Risk management.. Ans: DIE-DIE; Determine risks, Identify
risks, Evaluate the identified risks, Determine alternatives, Implement
program, Evaluate program
5 dividend options in whole life policies.. Ans: CRAPO; Cash option,
reduce premiums, accumulate @ interest, Paid-up additions, and Term
Cash Surrender value and Reduce paid up insurance are types of ...
Ans: non-forfeiture options
Annuities before 1982 receive what type of tax treatment? and after
1982? Ans: FIFO; LIFO
What are the 4 major classes of health insurance? Ans: Hospital
insurance
Surgical insurance
Physicians insurance
Major medical
Catch up contribution for HSA's are for individuals age...
Penalties for nonqual expenses end @ age... Ans: 55 and older; 65
What is HIPAA? Ans: Health Insurance Portability & Accountability Act
What is the purpose of HIPAA? Ans: It was put in place to protect
worker's ability to obtain health insurance when changing jobs, being laid
off, or retiring
COBRA Ans: Consolidated Omnibus Budget Reconciliation Act
CFP INSURANCE PLANNING QUESTIONS
WITH DETAILED VERIFIED ANSWERS
Insurable risks must be CHAD.. Ans: Catastrophic, Homogenous
exposure, Accidental, and Determinable
To be a legal contract the contract must have COALL.. Ans: Competent
parties, Offer & Acceptance, Legal consideration, and Lawful purpose
Void means what Ans: not valid
Voidable means.. Ans: Valid but allows for party to cancel the contract
Insurance contracts are UCAA. Ans: Unilateral
Conditional
Aleatory
Adhesion
Adhesion means.. Ans: Take it or leave it. Zero negotiations over terms
or conditions.
Aleatory means.. Ans: Money exchanged may be unequal. Ex: small
premium w/large DB
Unilateral means.. Ans: One promise is made by insurer and that is to
pay in event of a loss
Conditional means... Ans: insured must abide by terms / conditions of
the contract
Insurance agents have different types of authority.. Ans: true
Express authority means.. Ans: authority given through an agency or
written contract
, Page | 2
Implied authority means... Ans: the public receives knowledge of
authority
Ex: actual delivering of insurance contract and accepting premium
Insurance regulation is done by who? Ans: the states
6 steps in Risk management.. Ans: DIE-DIE; Determine risks, Identify
risks, Evaluate the identified risks, Determine alternatives, Implement
program, Evaluate program
5 dividend options in whole life policies.. Ans: CRAPO; Cash option,
reduce premiums, accumulate @ interest, Paid-up additions, and Term
Cash Surrender value and Reduce paid up insurance are types of ...
Ans: non-forfeiture options
Annuities before 1982 receive what type of tax treatment? and after
1982? Ans: FIFO; LIFO
What are the 4 major classes of health insurance? Ans: Hospital
insurance
Surgical insurance
Physicians insurance
Major medical
Catch up contribution for HSA's are for individuals age...
Penalties for nonqual expenses end @ age... Ans: 55 and older; 65
What is HIPAA? Ans: Health Insurance Portability & Accountability Act
What is the purpose of HIPAA? Ans: It was put in place to protect
worker's ability to obtain health insurance when changing jobs, being laid
off, or retiring
COBRA Ans: Consolidated Omnibus Budget Reconciliation Act
