CFP CFP InsurTech & Lending Technology

Question 1

What is 'InsurTech' in the context of financial technology?

Accepted Answer

The use of technology innovations to improve the efficiency of the insurance industry

Answer

Insurance sold exclusively through mobile apps

Answer

A government program insuring fintech startups

Answer

Automated claim processing software only

Question 2

Which technology allows InsurTech companies to use real-time driving data to price auto insurance policies?

Accepted Answer

Telematics and IoT devices

Answer

Blockchain smart contracts

Answer

Robotic process automation

Answer

Natural language processing

Question 3

What is 'peer-to-peer (P2P) insurance' in InsurTech?

Accepted Answer

A model where groups of people pool premiums to cover each other's claims

Answer

Insurance sold between individuals without an intermediary

Answer

Blockchain-based reinsurance contracts

Answer

Employer-sponsored group health plans

Question 4

What is the primary advantage of using machine learning in credit underwriting for lending fintechs?

Accepted Answer

Analyzing thousands of data points to improve risk prediction accuracy

Answer

Eliminating the need for credit scores entirely

Answer

Automatically approving all loan applications

Answer

Reducing interest rates for all borrowers

Question 5

What does 'marketplace lending' (also called peer-to-peer lending) refer to in fintech?

Accepted Answer

Online platforms matching borrowers directly with individual or institutional investors

Answer

Banks lending to each other overnight

Answer

Credit unions offering personal loans online

Answer

Government-backed small business loan programs

Question 6

Which U.S. federal law prohibits discriminatory lending practices that disproportionately harm protected classes?

Accepted Answer

Equal Credit Opportunity Act (ECOA)

Answer

Truth in Lending Act (TILA)

Answer

Fair Debt Collection Practices Act (FDCPA)

Answer

Community Reinvestment Act (CRA)