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FICEP PART 2 ACTUAL 2025/2026
QUESTIONS AND 100% CORRECT
ANSWERS
401k - (ANSWER)Plan A plan which allows employees to make tax-deferred
contributions to retirement savings accounts. Many employers match these
contributions at a specified ratio to help retirement savings build faster.
Beneficiary - (ANSWER)The person or persons who are designated to receive the
amount of the death benefit if the policyholder dies.
Cafeteria Plan - (ANSWER)Tax-qualified flexible benefit plans that are offered by
participating employers. It was created by the internal Revenue Code Section 125
Capital Gains - (ANSWER)The difference between what you pay for an
investment--stock, your home, or another possession-- and what you earn when
the item is sold
Compound interest - (ANSWER)The ability of savings to grow when the principal
and interest are left untouched. The member earns a return both on the original
principal and on all the interest that accrues over time
Death benefit - (ANSWER)the amount that is paid upon the death of the policy-
holder
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deductible - (ANSWER)the amount that the policy-holder must pay before
insurance begins to cover expenses
Dividends - (ANSWER)The amount that stockholders in a company receive.
Represents a portion of a company's profits
Flexible Spending Plan (FSA) - (ANSWER)A program offered by employers which
allows employees which allows employees to pay for eligible out-of-pocket health
care and dependent care expenses with pre-tax dollars. Have a Use-it-or-lose-it
provision, which means that any funds that are unused at the end of the plan year
are forfeited.
Health Savings Act (HSA) - (ANSWER)A program offered by employers which
allows employees enrolled in high-deductible health plans (HDHPs) to save for
future qualified medical expenses on a tax-free basis. There is no use it or lose it
provisions which means that money that is not spent for medical expenses
remains in the account to accuse interest.
Indemnification - (ANSWER)An agreement to hold an individual or business
harmless when they are engaged in a specific activity or while they are at a
specific location.
Individual retirement account (IRA) - (ANSWER)A retirement investing plan for
employees which allows them to contribute before-tax funds to the ___. The
money is then taxed when it is withdrawn
FICEP PART 2 ACTUAL 2025/2026
QUESTIONS AND 100% CORRECT
ANSWERS
401k - (ANSWER)Plan A plan which allows employees to make tax-deferred
contributions to retirement savings accounts. Many employers match these
contributions at a specified ratio to help retirement savings build faster.
Beneficiary - (ANSWER)The person or persons who are designated to receive the
amount of the death benefit if the policyholder dies.
Cafeteria Plan - (ANSWER)Tax-qualified flexible benefit plans that are offered by
participating employers. It was created by the internal Revenue Code Section 125
Capital Gains - (ANSWER)The difference between what you pay for an
investment--stock, your home, or another possession-- and what you earn when
the item is sold
Compound interest - (ANSWER)The ability of savings to grow when the principal
and interest are left untouched. The member earns a return both on the original
principal and on all the interest that accrues over time
Death benefit - (ANSWER)the amount that is paid upon the death of the policy-
holder
, 2
deductible - (ANSWER)the amount that the policy-holder must pay before
insurance begins to cover expenses
Dividends - (ANSWER)The amount that stockholders in a company receive.
Represents a portion of a company's profits
Flexible Spending Plan (FSA) - (ANSWER)A program offered by employers which
allows employees which allows employees to pay for eligible out-of-pocket health
care and dependent care expenses with pre-tax dollars. Have a Use-it-or-lose-it
provision, which means that any funds that are unused at the end of the plan year
are forfeited.
Health Savings Act (HSA) - (ANSWER)A program offered by employers which
allows employees enrolled in high-deductible health plans (HDHPs) to save for
future qualified medical expenses on a tax-free basis. There is no use it or lose it
provisions which means that money that is not spent for medical expenses
remains in the account to accuse interest.
Indemnification - (ANSWER)An agreement to hold an individual or business
harmless when they are engaged in a specific activity or while they are at a
specific location.
Individual retirement account (IRA) - (ANSWER)A retirement investing plan for
employees which allows them to contribute before-tax funds to the ___. The
money is then taxed when it is withdrawn
