Exam (elaborations)
FICEP STUDY GUIDE EXAM FULLY SOLVED #11
- Course
- Institution
FICEP STUDY GUIDE EXAM FULLY SOLVED #11
[Show more]
Content preview
FICEP STUDY GUIDE EXAM FULLY SOLVED #11401k - 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
Tax exemptions - correct answer An amount that may be subtracted from the taxable income, based on a listed provided by the IRS. An example is the personal exemption given to any taxpayer who cannot be claimed as a dependent by another person.
Tax Deductions - correct answer An expense that may be subtracted from the adjusted gross income when filing a tax return, based on definitions used by the IRS. An example
is the ability to deduct contributions to charities when filling an itemized tax return
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller YOURVERIFIEDEXAMPLUG. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.39. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
81989 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now