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Exam CRCM topic 1 question 68 discussion

Actual exam question from ABA's CRCM
Question #: 68
Topic #: 1
[All CRCM Questions]

Under content of disclosures long term disclosures may include the following, as applicable EXCLUDING:

  • A. Notification that the product is optional
  • B. Explanation of debt-suspension agreement
  • C. Lump-sum payment of fee with no refund
  • D. Refund of fee paid in lump sum
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Suggested Answer: D 🗳️

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Cam22
4 months ago
Selected Answer: C
Long-term disclosures for debt suspension agreements typically include notification that the product is optional, an explanation of the debt-suspension agreement, and provisions for a refund of the fee paid if the agreement is canceled. Therefore, the exclusion would be a lump-sum payment of a fee with no refund.
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