RFC Insurance Planning & Risk Management 3

Question 1

Which type of Medicare supplement (Medigap) plan is the only one that covers the Medicare Part B deductible under plans sold after January 1, 2020?

Accepted Answer

Plan G

Answer

After January 1, 2020, Plan F and Plan C were discontinued for new enrollees; Plan G is now the most comprehensive plan available, covering everything except the Part B deductible.

Question 2

A 'split-dollar' life insurance arrangement in a corporate setting most commonly involves which two parties sharing which component of a permanent policy?

Accepted Answer

Employer and employee share the policy's cash value and death benefit

Answer

Split-dollar plans typically involve the employer and employee sharing the premium payments, with each entitled to a portion of the cash value and death benefit.

Question 3

An RFC client wants liability coverage that sits above all underlying primary policies. Which type of policy provides this broad excess coverage?

Accepted Answer

Umbrella liability policy

Answer

An umbrella policy provides broad excess liability coverage over underlying auto, homeowners, and other primary policies, often filling coverage gaps as well.

Question 4

When evaluating a client's risk management needs, which step in the risk management process immediately follows identifying and analyzing the risk exposures?

Accepted Answer

Select the appropriate risk management technique

Answer

After identifying and analyzing exposures (including measuring potential severity and frequency), the next step is selecting the appropriate technique (avoid, reduce, retain, or transfer).

Question 5

A client's disability policy has a 90-day elimination period. The insured becomes disabled on March 1. When would the first benefit payment most likely be received?

Accepted Answer

July 1

Answer

A 90-day elimination period means benefits begin after 90 days of disability (June 1), with the first payment typically issued at the end of that first benefit month (July 1).

(RFC) Registered Financial Consultant Practice Test

(RFC) Registered Financial Consultant Practice Test

RFC Insurance Planning & Risk Management 3