FP 512 EXAM 2024-2025 WITH 250 REAL EXAM
QUESTIONS AND CORRECT ANSWERS (100%
CORRECT VERIFIED ANSWERS) 2024 FP 512
LATEST EXAM (NEW!!)
If Mega Insurance Company has an A+ Superior rating with A.M. Best Company, what should a planner tell his client about the rating? - ANSWER-An evaluation of the financial strength of an insurance company is best obtained by consulting more than one rating service.
The right of an insurer to recover damages from a third party for a loss covered by insurance is - ANSWER-indemnity.
Which of the following are examples of managing risk through risk retention?Having a coinsurance provision in medical insurance Increasing the amount of an automobile insurance deductible Increasing the benefit period on disability income insurance Having a waiver of premium rider on life insurance - ANSWER-I and II
A client had a partnership long-term care policy with a benefit of $175,000. The client was forced to use the policy's entire $175,000 benefit after she was admitted to the local nursing home. The client is wondering if she will qualify for Medicaid.Her partnership long-term care policy's benefit has been depleted, and she only has $127,000 in assets. Which of the following statements is CORRECT? - ANSWER- She can qualify for Medicaid because she will be allowed to retain up to $175,000 in assets plus approximately $2,000.
Which of the following statements regarding the roles of the National Association of Insurance Commissioners (NAIC) in regulating insurance is CORRECT? 1 / 4
The NAIC is composed of the state insurance commissioners from all 50 states.The NAIC makes recommendations for legislation and policy.The NAIC has the legal authority to require states to adopt its regulations. - ANSWER-I and II
Ronnie has been working and saving for a car since he was 13. He recently turned 16, obtained a driver's license, and purchased a car for which he paid cash. He went to his insurance agent's office and purchased the required car insurance. The agent did not notice that he is only 16. In the event of a claim, which option is available to the insurance company? - ANSWER-Pay the claim.
The pairs and sets option of loss settlement under a homeowners policy allows the insurance company to - ANSWER-repair or replace any part of the pair or set to its value before the loss.
Which of the following established that regulation of the insurance industry would be left up to the states? - ANSWER-The McCarran Ferguson Act of 1945
Which of the following are important when selecting an insurance company?Competence Training Ratings by the ratings companies History - ANSWER-III and IV
Which of the following are important when selecting an insurance producer?Competence Training Specialization 2 / 4
Length of service with the company - ANSWER-I, II, and III
Which of the following statements regarding insurable interest is CORRECT?For property and casualty insurance, insurable interest must exist when the policy is issued and at the time of the loss.For life insurance, insurable interest must exist at the time the policy is issued. - ANSWER-Both I and II
Which of the following limits an insurer's liability for covered losses?Misrepresentations by an agent acting within the agent's authority Other insurance coverage for the same loss - ANSWER-II only
Which of the following statements regarding risk management are CORRECT?
- A misrepresentation is carelessness or indifference on the part of an individual as
to whether a loss occurs and/or the size of a loss if one does occur.II. A morale hazard is a false and material statement made by an applicant for insurance, providing a basis for the insurer to make the contract voidable. - ANSWER-Neither I nor II
Which of the following types of risk is most suited to treatment by insurance? - ANSWER-Low probability, high severity
aleatory contract - ANSWER-is one in which one party might receive benefits substantially greater in value than the benefits received by the other party.
Which of the following is NOT a correct statement regarding an insurer's liability?
- ANSWER-The actual cash value of a loss is the acquisition cost of the property
less depreciation. 3 / 4
Which of the following cannot bind coverage for insurance on behalf of an applicant? - ANSWER-A broker
Which of the following statements best describes a morale hazard? - ANSWER-A condition of carelessness or indifference on the part of an individual as to whether a loss occurs and/or the size of a loss if one does occur
All of the following provide indirect federal regulation of the insurance industry except - ANSWER-) the NAIC.
A unilateral contract is one in which - ANSWER-only one party makes a legally enforceable promise
Which of the following is the role of the executive branch in regulating the insurance industry within a state? - ANSWER-) To enforce the laws in place relative to the insurance industry
Once you have analyzed and evaluated the information to identify a client's risk exposures, what is the next step in the risk management process? - ANSWER- Develop a risk management plan.
Adhesion: - ANSWER-one party writes the contract, and the other party has no say in the matter—she only accepts or rejects the contract.
Debbie recently lost one of her diamond earrings, and she filed an insurance claim.Which of the following is NOT an option for the insurer? - ANSWER-Require Debbie to surrender the remaining earring before receiving a check
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