FICEP PART 2 EXAM, COMPLETE TEST ||
QUESTIONS AND ANSWERS (VERIFIED ANSWERS)
(LATEST UPDATE 2026) UPDATE!!
Select the statement that correctly describes a progressive tax.
A progressive tax requires people to pay more as they earn more.
What is the name of the organization that offers free tax assistance to
taxpayers age 60 or older, those with disabilities or special needs, or who
qualify for earned income or homestead tax credits?
Tax Counseling for the Elderly (TCE)
What percent of tax payers are eligible to use the "Free File Online"
service offered as a partnership between the IRS and tax software
companies?
70% are eligible
When members use tax refunds to pay down debts, which debts should be
paid first?
Always pay the debts with high interest rates or that could prompt
garnishments.
Which type of qualified IRA withdrawal is exempt from income tax?
Roth IRA withdrawals are exempt.
Which group of taxpayers usually qualifies for the Earned Income Tax
Credit (EITC)?
Low-income families with earned income qualify for the credit.
These six expenses are typically accepted by the IRS as itemized
deductions:
, Traditional IRA contributions, alimony payments, real estate taxes paid,
state and local income taxes, mortgage interest, and casualty and theft
losses.
What is the meaning of the insurance practice "pooling of risks"?
Combining risks among insurers as well as groups of individuals.
How did the Consolidated Omnibus Budget Reconciliation Act (COBRA) of
1985 impact employee health benefits?
It gave employees the right to retain health insurance after their job ends
by paying the full premium.
Under standard property insurance plans, how much of the cost of
replacing property is typically covered?
80%
Which statement best defines comprehensive and collision insurance
coverage for vehicles?
Collision is for accidents and comprehensive is for other forms of damage
and theft.
What type of protection is provided by an umbrella liability policy?
It protects homeowners and vehicle owners from lawsuits.
Which statement accurately describes features of term insurance and
whole life insurance?
Whole life policies build cash value and policy settlement options.
Why should a member never simply drop a whole life insurance policy?
Whole life policies usually have cash value, or surrender options.
What is the "rule of 72" used to determine?
The number of years required to double the investment: 72 divided by
the current interest rate.
What is the rate of return?
QUESTIONS AND ANSWERS (VERIFIED ANSWERS)
(LATEST UPDATE 2026) UPDATE!!
Select the statement that correctly describes a progressive tax.
A progressive tax requires people to pay more as they earn more.
What is the name of the organization that offers free tax assistance to
taxpayers age 60 or older, those with disabilities or special needs, or who
qualify for earned income or homestead tax credits?
Tax Counseling for the Elderly (TCE)
What percent of tax payers are eligible to use the "Free File Online"
service offered as a partnership between the IRS and tax software
companies?
70% are eligible
When members use tax refunds to pay down debts, which debts should be
paid first?
Always pay the debts with high interest rates or that could prompt
garnishments.
Which type of qualified IRA withdrawal is exempt from income tax?
Roth IRA withdrawals are exempt.
Which group of taxpayers usually qualifies for the Earned Income Tax
Credit (EITC)?
Low-income families with earned income qualify for the credit.
These six expenses are typically accepted by the IRS as itemized
deductions:
, Traditional IRA contributions, alimony payments, real estate taxes paid,
state and local income taxes, mortgage interest, and casualty and theft
losses.
What is the meaning of the insurance practice "pooling of risks"?
Combining risks among insurers as well as groups of individuals.
How did the Consolidated Omnibus Budget Reconciliation Act (COBRA) of
1985 impact employee health benefits?
It gave employees the right to retain health insurance after their job ends
by paying the full premium.
Under standard property insurance plans, how much of the cost of
replacing property is typically covered?
80%
Which statement best defines comprehensive and collision insurance
coverage for vehicles?
Collision is for accidents and comprehensive is for other forms of damage
and theft.
What type of protection is provided by an umbrella liability policy?
It protects homeowners and vehicle owners from lawsuits.
Which statement accurately describes features of term insurance and
whole life insurance?
Whole life policies build cash value and policy settlement options.
Why should a member never simply drop a whole life insurance policy?
Whole life policies usually have cash value, or surrender options.
What is the "rule of 72" used to determine?
The number of years required to double the investment: 72 divided by
the current interest rate.
What is the rate of return?
