CFP 512 Practice Exam Questions and Answers
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Terms in this set (86)
Agents operating under C)
the American agency Independent agents
system who represent
several insurance
companies and decide on
a case-by-case basis
where they will place
business are also known
as which type of insurance
producer?
A)
Captive agents
B)
Career agents
C)
Independent agents
D)
Brokers
,Assume that a client has D)
the following needs and Variable universal life (VUL)
objectives when
purchasing a life insurance A VUL policy is the only type of policy that will meet
policy: all the client's needs. A VUL policy combines the
flexibility of universal life with the possibility of an
Flexible premium increasing death benefit and a higher cash value than
payments traditional fixed products. Annually renewable term
Possibility of increasing does not meet any of the client's needs and
death benefit Investment objectives.
options
Permanent protection
Analyze the needs and
objectives to determine a
product recommendation.
A)
Whole life
B)
Annually renewable term
(ART)
C)
Variable life
D)
Variable universal life
(VUL)
,Assume that an employer B)
plans to use corporate- Variable life insurance
owned life insurance to
informally fund a
nonqualified deferred
compensation agreement
and would like to have the
flexibility to invest in a
number of different asset
categories. Which one of
the following types of life
insurance should this
employer choose?
A)
Universal life insurance
B)
Variable life insurance
C)
Whole life insurance
D)
Term insurance
, Assume you have a client D)
who has already One-year term life insurance (or fifth dividend option)
purchased a whole life
insurance policy. Identify The answer is one-year term life insurance (or fifth
the dividend option that dividend option). The one-year term life insurance (or
should be chosen if the fifth dividend) option pays a death benefit equal to
client wants to use the the guaranteed net cash value (which is typically
dividend to purchase increasing annually). Extended term life insurance is a
additional temporary nonforfeiture option and interest only is a settlement
insurance equal to the option. Accumulate at interest is a dividend option
policy's current net cash where dividends are left with the insurance company
value. to accumulate with interest. The amount accumulated
is then added to the death benefit if the insured dies
A) or to the cash value if the policy is surrendered.
Interest only
B)
Extended term life
insurance
C)
Accumulate at interest
D)
One-year term life
insurance (or fifth dividend
option)
Save
Terms in this set (86)
Agents operating under C)
the American agency Independent agents
system who represent
several insurance
companies and decide on
a case-by-case basis
where they will place
business are also known
as which type of insurance
producer?
A)
Captive agents
B)
Career agents
C)
Independent agents
D)
Brokers
,Assume that a client has D)
the following needs and Variable universal life (VUL)
objectives when
purchasing a life insurance A VUL policy is the only type of policy that will meet
policy: all the client's needs. A VUL policy combines the
flexibility of universal life with the possibility of an
Flexible premium increasing death benefit and a higher cash value than
payments traditional fixed products. Annually renewable term
Possibility of increasing does not meet any of the client's needs and
death benefit Investment objectives.
options
Permanent protection
Analyze the needs and
objectives to determine a
product recommendation.
A)
Whole life
B)
Annually renewable term
(ART)
C)
Variable life
D)
Variable universal life
(VUL)
,Assume that an employer B)
plans to use corporate- Variable life insurance
owned life insurance to
informally fund a
nonqualified deferred
compensation agreement
and would like to have the
flexibility to invest in a
number of different asset
categories. Which one of
the following types of life
insurance should this
employer choose?
A)
Universal life insurance
B)
Variable life insurance
C)
Whole life insurance
D)
Term insurance
, Assume you have a client D)
who has already One-year term life insurance (or fifth dividend option)
purchased a whole life
insurance policy. Identify The answer is one-year term life insurance (or fifth
the dividend option that dividend option). The one-year term life insurance (or
should be chosen if the fifth dividend) option pays a death benefit equal to
client wants to use the the guaranteed net cash value (which is typically
dividend to purchase increasing annually). Extended term life insurance is a
additional temporary nonforfeiture option and interest only is a settlement
insurance equal to the option. Accumulate at interest is a dividend option
policy's current net cash where dividends are left with the insurance company
value. to accumulate with interest. The amount accumulated
is then added to the death benefit if the insured dies
A) or to the cash value if the policy is surrendered.
Interest only
B)
Extended term life
insurance
C)
Accumulate at interest
D)
One-year term life
insurance (or fifth dividend
option)
