CFP 512 PRACTICE EXAM WITH
QUESTIONS AND ANSWERS
Question: What is the minimum for the deductible on a high
deductible plan for an individual and a family?
CORRECT ANSWER : At least $1,200 for an individual and
$2,400 for a family
Question: Which of the following refers to the process of
evaluating and classifying the risk level of applicants for insurance?
CORRECT ANSWER : A) Underwriting
Question: Choose the method of risk management that is
implemented by a homeowner who installs storm shutters.
CORRECT ANSWER : A) Reduction
Question: Identify the CORRECT statement(s) regarding
Oscar and Judith’s risk management plan.
CORRECT ANSWER : B) II and IV
Question: Who will be responsible for the damages in
Preston’s sailboat accident?
CORRECT ANSWER : D) Joanna is responsible because, as
a broker, she personally bound coverage for Preston but was unable to place the coverage before the accident.
Question: Which of the following are duties of the courts in
regulating insurers?
CORRECT ANSWER : B) I and III
Question: The insurance industry is regulated primarily by
CORRECT ANSWER : D) the individual states.
Question: Which one of the following is the correct definition
of a term related to risk management?CORRECT ANSWER : D) Hazard: something that increases the likelihood of a loss occurring
Question: If Carmen and David’s silverware is stolen, which
legal remedy will most likely be used to assure the loss is covered?
CORRECT ANSWER : D) Doctrine of estoppel
Question: Which requirement is NOT in place to make Bill
and Jim’s contract enforceable?
CORRECT ANSWER : C) Legal object
Question: Which one of the following phrases describes an
unintentional tort?
CORRECT ANSWER : C) A civil, negligent wrong
Question: Which statements accurately reflect what may
occur or be required of William subsequent to his basement water leak?
CORRECT ANSWER : D) I, II, and IV
Question: Which of the following are primary criteria that
should be considered when selecting an insurer?
CORRECT ANSWER : B) I, III, and IV
Question: Agents operating under the American agency
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?
CORRECT ANSWER : C) Independent agents
Question: Which of the following perils are covered by an
HO15 endorsement to form HO3 for personal property?
CORRECT ANSWER : D) I, II, and IV
Question: How much will the insurance company pay Chuck
for his fire loss?
CORRECT ANSWER : A) $36,500
Question: For which of the following articles are floater
policies generally available?