Organisation : Financial Planning Standards Board India
Exam : Certified Financial Planner CFP Certification
Document type :Sample Question Paper
Website : fpsb.co.in
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Exam 1 : https://www.pdfquestion.in/uploads/6072-1Sample1to4-RAIP.pdf
Exam 2 : https://www.pdfquestion.in/uploads/6072-2SamplePaper_RPEB.pdf
Exam 3 : https://www.pdfquestion.in/uploads/6072-3SamplePaper_IP.pdf
Exam 4 : https://www.pdfquestion.in/uploads/6072-4Sample%20Paper_TPEP.pdf
FPSB CFP Exam Question Paper
Exam 1 – RISK ANALYSIS AND INSURANCE PLANNING
Attempted Answers Are Checked and Displayed In Blue Color.
Correct Answers are Displayed in Red Color after each Question.
Related / Similar Question Paper :
HPAS Examination Model Question Paper
1 The principle of indemnity does not provide against one of the following : [1 Mark]
(a) Morale hazard
(b) Profiteering from insurance
(c) Escalation in value of insured goods
(d) Moral hazard
(e) Not Attempted
Correct Answer :
Escalation in value of insured goods
2 Which of the following is not a characteristic of Insurance? [1 Mark]
(a) Insurance builds the risk capacity of businesses especially in large environmental projects
(b) Insurance allows financial security against future risk, accidents and uncertainty
(c) Insurance helps in reducing anxiety and fear before and after the loss occurs as the loss compensation is provided for
(d) Insurance protects and prevents the asset from loss due to the peril
(e) Not Attempted
Correct Answer :
Insurance protects and prevents the asset from loss due to the peril
3 Which of the following cannot change while agreeing on the implementation responsibilities? [1 Mark]
(a) The scope of the engagement, as originally defined
(b) The sources of compensation and material relationships, previously disclosed
(c) The responsibility itself of implementing the recommendations
(d) The conflicts of interest, previously disclosed
(e) Not Attempted
Correct Answer :
The responsibility itself of implementing the recommendations
4 What empirically is closest to Self Insurance? [1 Mark]
(a) One can buy insurance online
(b) An insurance company not reinsuring for excess risk covered
(c) Managing risk by investing a corpus to be used in case of loss
(d) One can retain the risk by not insuring against it
(e) Not Attempted
Correct Answer :
Managing risk by investing a corpus to be used in case of loss
The following Sample Paper consists of 39 question items. They span over the “Exam 1: Risk Analysis & Insurance Planning” and the “Module: Introduction to Financial Planning”.
The actual Question Paper would consist of 77 items of total 150 marks out of which Introduction to Financial Planning items would be 17 items of 30 marks, thus representing 20% of marks in each of Exam 1, 2, 3 & 4.
This Sample Paper is representative of the revised and restructured Exam effective from 1st February, 2013 as regards distribution and pattern of question items in respective Sections and their defined difficulty level.
For more details, refer to the Revised Syllabus and Topic List. Suggested solutions to 3-mark and 4-mark problems are as per Working Notes alongside.
Section I
5. The principle of proximate cause helps in insurance in ascertaining _______. [1 Mark]
(a) the principal cause that sets in motion a chain of events inflicting the loss
(b) the most immediate cause which inflicts the loss irrespective of the chain of events
(c) the most severe cause in the chain of events leading to the loss
(d) the nearest cause in a chain of events which can be identified for admissibility of insurance claim
(e) Not Attempted
Correct Answer :
the principal cause that sets in motion a chain of events inflicting the loss
6.[2 Marks]
(a) Any circumstances or relationships or facts that would place CFP practitioner’s interests in conflict with the client’s interests
(b) Any advice that would be in conflict with financial products/services industry’s business interests
(c) Any personal conflict that would affect a CFP practitioner’s ability to work successfully with the client
(d) Any circumstances or relationships or facts that would place the interests of one client in conflict with another client
(e) Not Attempted
Correct Answer :
Any advice that would be in conflict with financial products/services industry’s business interests
7 Which of the following statement is nearest to the concept of insurance? [2 Marks]
(a) Insurance helps business entities to recoup some of the losses incurred in the normal course of their business operations
(b) Insurance helps in regular savings by reducing income tax liability
(c) Insurance helps restore the former financial position of the insured in the vent of loss due occurrence of the perilous event
(d) Insurance helps individuals to be carefree of contingencies affecting their life and assets
(e) Not Attempted
Correct Answer :
Insurance helps restore the former financial position of the insured in the vent of loss due occurrence of the perilous event
Section II
8. In pooling of risk, several insurance companies create a risk pool of funds for covering certain risks. Which of the following is not intended in risk pools? [2 Marks]
(a) Insurance companies are able to extend insurance to individuals or businesses likely to create sizable claims.
(b) In case of catastrophic events, insurance companies spread the loss amongst all members.
(c) The pool account acts like a buffer to absorb the excess risk covered by individual participating insurers for all types of risk.
(d) This helps private insurers to carry out business by spreading excess risk and providing more competitive premiums to individual customers.
(e) Not Attempted
Correct Answer :
The pool account acts like a buffer to absorb the excess risk covered by individual participating insurers for all types of risk
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