Certified Financial Consultant (CFC) Practice Exam

The statement that labor unions, fraternal organizations, and cooperatives may opt for a self-insured medical and disability plan is accurate. These entities often have the flexibility to design their benefits packages in a way that best serves their members' needs. Self-insurance can be an appealing option, as it allows these organizations to retain more control over their medical and disability benefits, manage costs directly, and potentially reduce expenses compared to conventional insurance plans.

This option enables them to provide tailored benefits while maintaining financial stability and ensuring quality coverage for their members. By self-insuring, these organizations take on the risk but can also reap the rewards of managing their healthcare costs effectively, making this statement true.

In contrast, the other options lack accuracy. Stating that these organizations only provide health insurance oversimplifies their function, as they may offer a range of benefits beyond just health coverage. The assertion that they do not offer benefits to members is incorrect, as these organizations are typically created to serve the interests and welfare of their members by providing various forms of assistance and benefits. Lastly, claiming that they operate solely for profit mischaracterizes their primary goals, as labor unions and cooperatives particularly focus on serving their members' interests rather than prioritizing profit generation.