Quiz Misses Flashcards
Hone in on the questions missed in the quizzes and final exams.
what must be provided to the client in writing
-how the firm will be compensated by the client
-the terms of engagement with the client
-firms privacy statement
-services and any bankruptcies or disciplinary history relating to the firm or its principals
what element of the CFP Code of Ethics is designed to dovetail with the steps in the financial planning process
the practice standards
what happens if a CFP has a case of conduct that falls under the “presumptive bar” list
these cases are reviewed by the Disciplinary and Ethics Commission (DEC) before a final decision is made to deny or revoke the CFP Marks
what value are assets shown on the statement of financial position
current fair market value
what gave the SEC authorization to regulate mutual funds
the investment company act of 1940
who regulates brokerage companies
FINRA
is a QTIP a gift of present or future interest?
present interest even though the owner retains control
when does the business cycle peak?
when business activity ages
this means the public stops buying because they have enough of everything they need
what happens to basis of joint tenant property if there is a divorce
basis stays the same. no one does, so there is no step up in basis
in a period of declining interest rates, what type of bonds should you advise your client buy?
long term, high grade bonds
this locks in a higher coupon and generates profits in the bond portfolio
ADV Part 1
business address and background
what obligations do the agents have to the principal
loyalty
installing floodlights in the parking lot is an example of what risk strategy
risk reduction
legally binding arrangement that explains the basic promise of the insurance company
the insuring agreement
what is the declarations section of an insurance contract
the factual statements identifying the specific person, property, or activity being insured
give a common example of absolute liability
workers comp
employer paid insurance premiums that are tax deductible
business owners insurance
workers comp
federal unemployment tax
directors and officer’s liability insurance
what is the “breakpoint in insurance”
when the insurer begins to pay 100% of all medical expenses
penalty for late sign-up for Medicare Part D
1% for each month late
One year term accomplishes what?
pays a death benefit equal to the guaranteed case value (which is increasing)
extended term insurance
non forfeiture option that maintains the original death benefit for a limited number of years
quirk of cash surrender option with life insurance
COULD apply a 6 month delay in an attempt to prevent a run on banks
APL
enables the insurance company to borrow from a life insurance policy’s cash value to pay premiums in default
what type of gain is the surrender value of life insurance
ordinary income
