medium · Certified Financial Planner General Principles
A financial planner is engaged by the Priest family for a limited-scope review of their education funding for their daughter, Saini Priest. During the intake, the planner discovers the Priests have no wills, no powers of attorney, and no life insurance. The planner recommends the Priests first purchase a $1 million term life policy through the planner's agency.
Which of the following is the most accurate assessment of this recommendation?
- The recommendation is appropriate because it addresses the most critical risk (premature death).
- The recommendation is improper because it exceeds the defined scope of the engagement.
- The planner is acting correctly as a fiduciary by identifying and addressing an uninsured risk.
- The recommendation is only valid if the planner discloses the commission they will receive.
Sign up free to see the explanation and track your rank →
More Certified Financial Planner General Principles practice
- What is the maximum amount that can be sheltered by the annual gift tax exclusion if the…
- For 2026, which portion of their interest is deductible as an itemized deduction?
- What will happen to their bond's true market price compared to the price predicted by…
- Which has a duration of 7.2 years. If interest rates rise by 100 basis points, which of…
- Based on the 2026 current IRS figures and SECURE 2.0, which statement is correct?
- The Hartwell household is reviewing a bond portfolio. If… Which concept explains this…
- The Fenwick family owns a business with 5 equal partners… How many total policies are…
- Which of the following is brought back into his gross estate under the 3-year lookback…
All General Principles questions · Certified Financial Planner study guide · Certified Financial Planner glossary · Certified Financial Planner flashcards