FICEP PART 2 QUESTIONS AND CORRECT
ANSWERS LATEST 2025-2026 UPDATE
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 The money is then taxed when it is withdrawn
Insurable Interest - 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 - Answer-Property or possessions that are easily accessible
and can be turned into cash
Liquidity - Answer-The ability to convert the investment to cash
Mutual funds - 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 - Answer-A property or possession that cannot
easily be turned into cash
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
ANSWERS LATEST 2025-2026 UPDATE
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
Insurable Interest - 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 - Answer-Property or possessions that are easily accessible
and can be turned into cash
Liquidity - Answer-The ability to convert the investment to cash
Mutual funds - 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 - Answer-A property or possession that cannot
easily be turned into cash
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
