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FiCEP Final : CUNA Review Exam with Questions and Answers
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FiCEP Final : CUNA Review Exam with Questions and Answers
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FiCEP Final : CUNA Review Exam withQuestions and Answers
What should be the goal of managing a taxpayer's income tax withholding? - ✔✔To maintain
cash flow while avoiding a tax bill at filing time.
What happens to year-end balances "left over" in Section 125 plans or health savings accounts
(HSAs)? - ✔✔Section 125 balances are forfeited, while HSA balances are rolled over
How much can a member in the 25% tax bracket save in federal income taxes by depositing
pre-tax income into tax-deferred retirement accounts, such as traditional IRAs? - ✔✔One-
fourth of the deposit.
Which statement accurately describes options for reducing income taxes? - ✔✔Tax
exemptions, deductions, and credits all help reduce income taxes.
Which group of taxpayers usually qualifies for the Earned Income Tax Credit (EITC)? -
✔✔Low-income families with earned income qualify for the credit.
These six expenses are typically accepted by the IRS as itemized deductions: - ✔✔Traditional
IRA contributions, alimony payments, real estate taxes paid, state and local income taxes,
mortgage interest, and casualty and theft losses.
What is the first step financial counselors can take to determine whether a member is properly
managing their taxes? - ✔✔Review the member's payroll stub.
What is the meaning of the insurance practice "pooling of risks"? - ✔✔Combining risks
among insurers as well as groups of individuals.
,What is an insurable interest? - ✔✔The policyholder's monetary interest in the insured
property.
From the perspective of your financial well-being, what is the best way to decide whether or
not you should insure a particular item? - ✔✔Consider the risk to your assets.
Select the correct description for the "elimination period". - ✔✔How long a person must be
disabled before they are eligible for benefits.
When does Workers' compensation provide benefits to workers? - ✔✔When the worker has
a work-related illness or injury.
In addition to administrative costs, litigation, and third-party payments, what two factors have
significantly contributed to rising health insurance costs? - ✔✔The rising cost of medical
technology, as well as the fact that people are living longer.
How did the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985 impact
employee health benefits? - ✔✔It gave employees the right to retain health insurance after
their job ends by paying the full premium.
If a member decides to purchase long-term care insurance, when is the best time to obtain a
policy? - ✔✔Sign up while they are still in good health so carriers will accept you.
What types of insurance policies should be avoided by most members? - ✔✔Policies which
offer coverage only in very specific conditions, making it hard to qualify for benefits.
Which group of people is most likely to purchase HO-4, or "contents coverage"? -
✔✔Renters
, How can a policyholder obtain additional insurance protection for items such as antiques or
guns that might otherwise have only limited insurance reimbursement for theft or loss due to
policy limits? - ✔✔Purchase a schedule policy rider, or "schedule" the items.
What is a possible consequence of ignoring exclusions to homeowner's policy? - ✔✔The
policy may not pay for a claim.
Under standard property insurance plans, how much of the cost of replacing property is
typically covered? - ✔✔80%
Who is eligible to participate in the federal government's National Flood Insurance Program? -
✔✔Homeowners in participating communities that are susceptible to floods.
Which statement best defines comprehensive and collision insurance coverage for vehicles? -
✔✔Collision is for accidents and comprehensive is for other forms of damage and theft.
Which factors can impact the cost of vehicle insurance? - ✔✔The driver's age and gender, as
well as the deductible amount.
How can members reduce auto insurance premiums without violating state laws? -
✔✔Comparison shop, increase the deductible, or find discounts.
What type of protection is provided by an umbrella liability policy? - ✔✔It protects
homeowners and vehicle owners from lawsuits.
What should a member look for when seeking a good insurance agent? - ✔✔An agent who is
licensed by the state and has completed industry training.
Which groups have the greatest need for life insurance? - ✔✔Wage earners with
dependents
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