Risk Management/Employee and Business-Owner Planning

Overview

This CPE course can be purchased individually, or as a part of the Fundamentals of Personal Financial Planning program.

Understand risk management and its role in developing a comprehensive and practical financial plan for your clients.

Learn how to help your clients manage risk by analyzing the client's exposure to different types of risk and making reasoned recommendations about how best to respond to those risks.

Navigate how to effectively choose among the various methods of addressing risk in order to avoid a catastrophic loss and, through real-life scenarios and practical guidance, gain knowledge of the following topics:

• The risk management process, starting with basic concepts such as hazard and peril and how the six steps in the risk management process pertain to a personal financial planning engagement
• Legal elements of insurance contracts, including the principle of indemnity, offer and acceptance, consideration, competent parities, and legal purpose
• Regulatory environment including professional responsibilities, compensation methods, and insurance company ratings
• Types of insurance contracts including annuities, life insurance, disability, long-term care, and property and casualty

Highlights

Key Topics

• The risk management process
• Legal elements of insurance contracts
• Regulatory environment
• Types of insurance contracts

Prerequisites

None

Objectives

Learning Outcomes

• Distinguish among the terms hazard, peril, and risk.
• Recall the legal elements of an insurance contract.
• Distinguish types of life insurance contracts.
• Select the type of insurance to address personal loss exposure risk.
• Recall life insurance features, nonforfeiture, and settlement options for clients.
• Recall an advantage of a life annuity without refund.
• Recognize the need for risk management in a personal financial planning engagement.
• Indicate risk management methods based on facts and circumstances.