FPQP PRACTICE TEST 2026 TESTED
QUESTIONS WITH DETAILED SOLUTIONS
GRADED A+
●● You plan to contribute $3,000 per year at the end of each year to a
tax-deferred retirement plan.
You plan to retire in 35 years.
You want to have an account worth $1 million at retirement.
What annual rate of return will you need to earn to achieve your goal?.
Answer: 10.89%
Set calculator for 1 P/YR, end mode
3000 +/− PMT,
35 N,
1000000 FV,
solve for I/YR = 10.89%.
●● The marital deduction used when settling the estates of married
decedents provides that.
Answer: an unlimited amount of property may be transferred between
spouses to avoid tax on the estate of the first spouse to die.
●● Which of the following personal risks are considered potential
catastrophic expenses?.
,Answer: Medical expenses
Long-term care
Natural disasters
Lawsuits
●● Which of the following characteristics apply to a traditional whole
life policy?.
Answer: It is considered permanent coverage.
It has higher initial premiums than term life.
It offers the potential to build cash value.
It offers level premiums throughout the life of the insured.
●● Which one of the following is NOT a factor that premiums can be
based upon under the Affordable Care Act?.
Answer: Gender
●● Which one of the following are factor that premiums can be based
upon under the Affordable Care Act?.
Answer: Smoking status
Age
Family size
Geography
, ●● Which of the following statements regarding probate are
CORRECT?.
Answer: Testate estates are subject to probate.
Intestate estates are subject to probate.
Probate requires the appointment of a personal representative.
●● Which one of the following bonds is selling at a premium?.
Answer: 11% Valez Corp., BBB rated, current price of $1,001
A premium bond is a bond selling for more than par (also called maturity
value) which is $1,000. The only bond listed selling for more than
$1,000 is the Valez Corp. bond at $1,001.
●● A $1,000 par value, 15-year bond pays interest of $40 semiannually
and is trading at $970. What is its yield to maturity?.
Answer: Set calculator for 2 P/YR, end mode, C ALL. 970 +/- PV, 40
PMT, 1,000 FV, 15, DOWNSHIFT, N (30 compounding periods) then
solve for I/YR = 8.35%.
●● Which of the following is a type of exposure that would be covered
by a personal umbrella liability policy?.
Answer: Mary is sued by the person with whom she just had an
automobile accident while picking up her son at soccer practice.
QUESTIONS WITH DETAILED SOLUTIONS
GRADED A+
●● You plan to contribute $3,000 per year at the end of each year to a
tax-deferred retirement plan.
You plan to retire in 35 years.
You want to have an account worth $1 million at retirement.
What annual rate of return will you need to earn to achieve your goal?.
Answer: 10.89%
Set calculator for 1 P/YR, end mode
3000 +/− PMT,
35 N,
1000000 FV,
solve for I/YR = 10.89%.
●● The marital deduction used when settling the estates of married
decedents provides that.
Answer: an unlimited amount of property may be transferred between
spouses to avoid tax on the estate of the first spouse to die.
●● Which of the following personal risks are considered potential
catastrophic expenses?.
,Answer: Medical expenses
Long-term care
Natural disasters
Lawsuits
●● Which of the following characteristics apply to a traditional whole
life policy?.
Answer: It is considered permanent coverage.
It has higher initial premiums than term life.
It offers the potential to build cash value.
It offers level premiums throughout the life of the insured.
●● Which one of the following is NOT a factor that premiums can be
based upon under the Affordable Care Act?.
Answer: Gender
●● Which one of the following are factor that premiums can be based
upon under the Affordable Care Act?.
Answer: Smoking status
Age
Family size
Geography
, ●● Which of the following statements regarding probate are
CORRECT?.
Answer: Testate estates are subject to probate.
Intestate estates are subject to probate.
Probate requires the appointment of a personal representative.
●● Which one of the following bonds is selling at a premium?.
Answer: 11% Valez Corp., BBB rated, current price of $1,001
A premium bond is a bond selling for more than par (also called maturity
value) which is $1,000. The only bond listed selling for more than
$1,000 is the Valez Corp. bond at $1,001.
●● A $1,000 par value, 15-year bond pays interest of $40 semiannually
and is trading at $970. What is its yield to maturity?.
Answer: Set calculator for 2 P/YR, end mode, C ALL. 970 +/- PV, 40
PMT, 1,000 FV, 15, DOWNSHIFT, N (30 compounding periods) then
solve for I/YR = 8.35%.
●● Which of the following is a type of exposure that would be covered
by a personal umbrella liability policy?.
Answer: Mary is sued by the person with whom she just had an
automobile accident while picking up her son at soccer practice.
