Practice Test Geeks(CFP) Certified Fintech Practitioner Practice Test
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CFP InsurTech & Lending Technology Flashcards

6 cards from real CFP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 CFP InsurTech & Lending Technology flashcards as text

  1. What is 'embedded insurance' in the InsurTech context?

    Answer: Insurance bundled into non-insurance products or platforms at the point of sale

    Embedded insurance integrates coverage seamlessly into the purchase of a product or service (e.g., travel insurance offered when booking a flight), streamlining distribution.

  2. What is a 'parametric insurance' policy?

    Answer: A policy that pays a fixed amount when a specific triggering event occurs, regardless of actual loss

    Parametric insurance pays a predetermined amount when a measurable event (e.g., earthquake above magnitude 6.0) occurs, eliminating lengthy claims investigations.

  3. What is 'buy now, pay later' (BNPL) and how is it regulated in the U.S.?

    Answer: A short-term installment loan offered at point of sale; subject to CFPB oversight under TILA

    BNPL is a short-term financing option splitting purchases into installments; the CFPB has asserted that BNPL products are subject to TILA protections including dispute rights.

  4. What does 'open banking' enable for lending fintech platforms in the U.S.?

    Answer: Banks to share customer data with third parties via APIs with customer consent

    Open banking allows consumers to share their financial data (bank account history, cash flow) with fintech lenders via secure APIs, improving underwriting accuracy.

  5. What is 'algorithmic bias' risk in fintech lending?

    Answer: When AI/ML models systematically disadvantage protected groups in credit decisions

    Algorithmic bias occurs when lending models trained on historical data perpetuate or amplify existing discrimination, potentially violating ECOA and Fair Housing Act standards.

  6. What is the role of 'reinsurance technology' (reinsurtech) in the insurance ecosystem?

    Answer: Applying technology to improve risk transfer, pricing, and data exchange between insurers and reinsurers

    Reinsurtech uses data analytics, AI, and digital platforms to improve how insurers transfer risk to reinsurers, enabling more accurate pricing and faster contract execution.