Analysis and Evaluation of Risk Exposures

Free CFP Exam lesson in Risk Management and Insurance Planning. 15 min read, ~2,175 words.

Five personal risk exposures: premature death, disability, health care costs, property loss, liability. No dependents = no premature death exposure regardless of net worth. Employer-paid disability benefits are taxable: always calculate the after-tax replacement ratio. Frequency-severity matrix sets treatment: retain low-severity, transfer low-frequency/high-severity, avoid high-frequency/high-severity. Coinsurance formula: (amount carried /...

What this lesson covers

• Content
• Example 1
• Example 2
• Common Mistakes
• Check Your Understanding
• Exam Shortcuts

Learning objectives

• C.18

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