FICEP Part 2 Exam Newest 2025/2026
Questions and Correct Answers Graded
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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.
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
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 The money is then taxed when it is withdrawn
Questions and Correct Answers Graded
A+|Assured Success|Latest Version
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.
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
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
