CFP 512 Exam Correct Answers
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Practice questions for this set
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Any contract in which one party must either accept the agreement as written
by the other party or reject it. Prepared by one party and accepted or
rejected by another.
Choose an answer
Difference between risk, peril and
1 2 Risk Transfer
hazard
3 Contract of Adhesion 4 Particular Risk
Don't know?
Terms in this set (69)
, 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.
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.
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?
Save
Practice questions for this set
Learn 1/7 Study with Learn
Any contract in which one party must either accept the agreement as written
by the other party or reject it. Prepared by one party and accepted or
rejected by another.
Choose an answer
Difference between risk, peril and
1 2 Risk Transfer
hazard
3 Contract of Adhesion 4 Particular Risk
Don't know?
Terms in this set (69)
, 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.
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.
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?
