FICEP PART 2 EXAM | QUESTIONS AND ANSWERS | VERIFIED
ANSWERS | EXAM ALREADY GRADED A+ | LATEST EXAM UPDATE
401k - CORRECT 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 - CORRECT ANSWER - The person or persons who are
designated to receive the amount of the death benefit if the policyholder dies.
Cafeteria Plan - CORRECT ANSWER - Tax-qualified flexible benefit plans
that are offered by participating employers. It was created by the internal
Revenue Code Section 125
Capital Gains - CORRECT 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 - CORRECT 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 - CORRECT ANSWER - the amount that is paid upon the death
of the policy-holder
deductible - CORRECT ANSWER - the amount that the policy-holder must
pay before insurance begins to cover expenses
,Dividends - CORRECT ANSWER - The amount that stockholders in a
company receive. Represents a portion of a company's profits
Flexible Spending Plan (FSA) - CORRECT 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) - CORRECT 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 - CORRECT 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) - CORRECT 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 The money is then taxed when it is withdrawn
Insurable Interest - CORRECT ANSWER - The direct monetary interest that
the policyholder has in the insured property. Must be sufficient to result in
monetary loss should the property be damaged or destroyed.
Liquid asset - CORRECT ANSWER - Property or possessions that are easily
accessible and can be turned into cash
Liquidity - CORRECT ANSWER - The ability to convert the investment to
cash
, Mutual funds - CORRECT ANSWER - A collective investment that pools
money from many investors and invest their money in stocks, bond or income
funds, and money market funds.
Non-Liquid Assest - CORRECT ANSWER - A property or possession that
cannot easily be turned into cash
Policy Rider - CORRECT ANSWER - An additional feature of a policy. A
rider may be used to expand coverage or spell out rights or requirements for
policyholders
Pooling of risk - CORRECT ANSWER - Combining or sharing risk among
insurers or groups of insured individuals. By ______ __ ____, insurers limit
their exposure when losses occur
Rate of Return - CORRECT ANSWER - The increase in value of your original
investment, which is typically measured at specific points in time by the
account holder
Return - CORRECT ANSWER - The gain in value on the original investment.
Risk - CORRECT ANSWER - The chance that you might lose your original
investment. Investments with greater risk, such as in the stock market, must
promise a higher rate of return
Schedule (scheduling) - CORRECT ANSWER - To cover property that has a
special value or is not typically covered under a homeowner's policy by adding
a rider to the policy
Standard of living - CORRECT ANSWER - A level of material comfort as
measured by the goods and services available to an individual
ANSWERS | EXAM ALREADY GRADED A+ | LATEST EXAM UPDATE
401k - CORRECT 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 - CORRECT ANSWER - The person or persons who are
designated to receive the amount of the death benefit if the policyholder dies.
Cafeteria Plan - CORRECT ANSWER - Tax-qualified flexible benefit plans
that are offered by participating employers. It was created by the internal
Revenue Code Section 125
Capital Gains - CORRECT 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 - CORRECT 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 - CORRECT ANSWER - the amount that is paid upon the death
of the policy-holder
deductible - CORRECT ANSWER - the amount that the policy-holder must
pay before insurance begins to cover expenses
,Dividends - CORRECT ANSWER - The amount that stockholders in a
company receive. Represents a portion of a company's profits
Flexible Spending Plan (FSA) - CORRECT 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) - CORRECT 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 - CORRECT 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) - CORRECT 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
Insurable Interest - CORRECT ANSWER - The direct monetary interest that
the policyholder has in the insured property. Must be sufficient to result in
monetary loss should the property be damaged or destroyed.
Liquid asset - CORRECT ANSWER - Property or possessions that are easily
accessible and can be turned into cash
Liquidity - CORRECT ANSWER - The ability to convert the investment to
cash
, Mutual funds - CORRECT ANSWER - A collective investment that pools
money from many investors and invest their money in stocks, bond or income
funds, and money market funds.
Non-Liquid Assest - CORRECT ANSWER - A property or possession that
cannot easily be turned into cash
Policy Rider - CORRECT ANSWER - An additional feature of a policy. A
rider may be used to expand coverage or spell out rights or requirements for
policyholders
Pooling of risk - CORRECT ANSWER - Combining or sharing risk among
insurers or groups of insured individuals. By ______ __ ____, insurers limit
their exposure when losses occur
Rate of Return - CORRECT ANSWER - The increase in value of your original
investment, which is typically measured at specific points in time by the
account holder
Return - CORRECT ANSWER - The gain in value on the original investment.
Risk - CORRECT ANSWER - The chance that you might lose your original
investment. Investments with greater risk, such as in the stock market, must
promise a higher rate of return
Schedule (scheduling) - CORRECT ANSWER - To cover property that has a
special value or is not typically covered under a homeowner's policy by adding
a rider to the policy
Standard of living - CORRECT ANSWER - A level of material comfort as
measured by the goods and services available to an individual
