FHCE final WITH CORRECT QUESTION
AND ANSWERS 2025/2026
4 types of 401 K - correct answers traditional
safe harbor
simple
automatic enrollment
401 K plans - correct answers in 1978, congress decided that Americans needed a bit of
encouragement to save more money for retirement
the plan got into name from its section number and paragraph In the internal revenue code-
section 401 paragraph k
a 401 k plan is a qualified retirement plan that meets the standards set forth in the internal
revenue code (IRC) for tax-favored status
an employee can contribute part of his wages either pre or post tax depending on the options
offered in the plan
in some plans, the employer also makes contributions commonly referred to as "matching"
contributions
403 b - correct answers if you work for a gov agency or non profit, you will not be eligible for a
401 k account. instead you will have 403 b plan
,529 IRA - correct answers a dedicated college savings account that offers special tax advantages
when used for college expenses
unlimited contributions and no age limits
6 versions of homeowners insurance - correct answers HO-1 Basic form
HO-2 Broad form
HO-3 special form
HO-4 renter's insurance
HO-6 Condo owner's insurance
HO-8 Modified coverage- older homes insurance
adjust salary down - correct answers 5 to 4 (20% drop)
4 to 3 (22% drop)
3 to 2 (26% drop)
2 to 1 (30% drop)
5 to 3 policy doesn't exist
appointment clause - correct answers names the executor of the will
appoints guardians for all children under 18 yo
attestation and witness clause - correct answers dates and validates the will with a signature
with 2 or more witnesses, who also must sign the document
Auto Liability Combined Single Limit Insurance ($100,000) - correct answers total liability
insurance regardless of how many ppl involved in an accident
, auto liability insurance - correct answers every state requires you to have what type of auto
insurance?
Auto Liability Split Coverage Insurance Limits - correct answers $100k of bodily injury liability
coverage per person, $300k of bodily injury liability coverage for each accident, $50k of
property damage liability coverage
automatic enrollment - correct answers allows employers to enroll employees in a plan without
the employees written consent. unless and employee elects out of the 401 k plan, the plan
sponsor will start 401 k deferrals for the eligible employees at a given rate after providing the
required notices
average funeral cost - correct answers $10,000
basic organization of a will - correct answers introductory statement
payment of debt and taxes clause
disposition of property clause
appointment clause
common disaster clause
attestation and witness clause
beneficiaries - correct answers the people who receive your property
beneficiary - correct answers recipient of the benefit upon the death of the insured
cash-value insurance - correct answers provides a death benefit and an opportunity to
accumulate savings. provides permanent insurance.
AND ANSWERS 2025/2026
4 types of 401 K - correct answers traditional
safe harbor
simple
automatic enrollment
401 K plans - correct answers in 1978, congress decided that Americans needed a bit of
encouragement to save more money for retirement
the plan got into name from its section number and paragraph In the internal revenue code-
section 401 paragraph k
a 401 k plan is a qualified retirement plan that meets the standards set forth in the internal
revenue code (IRC) for tax-favored status
an employee can contribute part of his wages either pre or post tax depending on the options
offered in the plan
in some plans, the employer also makes contributions commonly referred to as "matching"
contributions
403 b - correct answers if you work for a gov agency or non profit, you will not be eligible for a
401 k account. instead you will have 403 b plan
,529 IRA - correct answers a dedicated college savings account that offers special tax advantages
when used for college expenses
unlimited contributions and no age limits
6 versions of homeowners insurance - correct answers HO-1 Basic form
HO-2 Broad form
HO-3 special form
HO-4 renter's insurance
HO-6 Condo owner's insurance
HO-8 Modified coverage- older homes insurance
adjust salary down - correct answers 5 to 4 (20% drop)
4 to 3 (22% drop)
3 to 2 (26% drop)
2 to 1 (30% drop)
5 to 3 policy doesn't exist
appointment clause - correct answers names the executor of the will
appoints guardians for all children under 18 yo
attestation and witness clause - correct answers dates and validates the will with a signature
with 2 or more witnesses, who also must sign the document
Auto Liability Combined Single Limit Insurance ($100,000) - correct answers total liability
insurance regardless of how many ppl involved in an accident
, auto liability insurance - correct answers every state requires you to have what type of auto
insurance?
Auto Liability Split Coverage Insurance Limits - correct answers $100k of bodily injury liability
coverage per person, $300k of bodily injury liability coverage for each accident, $50k of
property damage liability coverage
automatic enrollment - correct answers allows employers to enroll employees in a plan without
the employees written consent. unless and employee elects out of the 401 k plan, the plan
sponsor will start 401 k deferrals for the eligible employees at a given rate after providing the
required notices
average funeral cost - correct answers $10,000
basic organization of a will - correct answers introductory statement
payment of debt and taxes clause
disposition of property clause
appointment clause
common disaster clause
attestation and witness clause
beneficiaries - correct answers the people who receive your property
beneficiary - correct answers recipient of the benefit upon the death of the insured
cash-value insurance - correct answers provides a death benefit and an opportunity to
accumulate savings. provides permanent insurance.
