FICEP CUNA LATEST 2026 MAIN FINAL EXAM QUESTIONS
AND SOLUTIONS GUARANTEE A+
✔✔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
✔✔Select the correct definition for the "death benefit" of a life insurance policy. - ✔✔The
amount paid if the insured person dies.
✔✔Why is a term life policy often a good choice for members with financial obligations
who are struggling with a tight budget? - ✔✔It's the most affordable.
✔✔Which statement accurately describes features of term insurance and whole life
insurance? - ✔✔Whole life policies build cash value and policy settlement options.
✔✔Why should a member never simply drop a whole life insurance policy? - ✔✔Whole
life policies usually have cash value, or surrender options.
✔✔How do riders affect whole life insurance policies? - ✔✔Riders offer options to
expand or adapt coverage as the member's needs or circumstances change.
✔✔Which of the following riders provides benefits to a member who becomes disabled?
- ✔✔A premium waiver for disability rider covers premiums while a member is disabled.
✔✔What is the meaning of the phrase "buy term and invest the difference"? -
✔✔People should buy a term life policy, compare the cost to a whole life policy, and
then invest the amount they saved.
,✔✔For people without life insurance, now is usually the best time to buy because.. -
✔✔insurance availability declines as people grow older and their health declines.
✔✔How does life insurance improve a family's financial stability? - ✔✔It provides funds
to support a family after the loss of a key wage.
✔✔What are four things members should have in place before establishing an
investment program? - ✔✔An emergency fund, adequate insurance, a savings plan,
and a positive credit history.
✔✔What is the recommended advice regarding saving and investing? - ✔✔Saving
should come first, followed by investing.
✔✔What are the advantages of having savings? - ✔✔Savings offer an insured principal
easily accessed for short-term needs.
✔✔Why is compound interest so important? - ✔✔It gives the member a return on both
the original principal and all the interest that accrues over time.
✔✔What is the "rule of 72" used to determine? - ✔✔The number of years required to
double the investment: 72 divided by the current interest rate.
✔✔What is the rate of return? - ✔✔The percentage gain in value on your investment.
✔✔What is the definition of dividend? - ✔✔The portion of a company's profits paid to
stockholders.
✔✔Why is a savings account considered a liquid asset? - ✔✔The balance can be easily
converted to cash.
✔✔How do investors define risk? - ✔✔Risk is the chance that you will lose the original
investment.
✔✔What is the rate of return on a 401(k) if your employer matches every $1 you invest
with a deposit of 25 cents? - ✔✔25%
✔✔Select the statement that describes two benefits of investing in mutual funds. -
✔✔Mutual funds typically combine diversification with the ability to invest with relatively
small deposits.
✔✔Choose the correct ranking of investments based on typical performance in order of
lower risk to higher risk. - ✔✔Savings account, life insurance, and mutual funds.
, ✔✔Which investment vehicle has traditionally had the highest rate of return? -
✔✔Common stocks over the last 50 years
✔✔When the investor's goal is the preserve the principal, what type of investment
vehicle should be selected? - ✔✔The investor should select the safest investment
options available.
✔✔What should the financial counselor consider when making referrals to a specific
investment advisor? - ✔✔The investment advisor's compensation, professional
designation, and training.
✔✔Which of the following statements accurately describes the belief that "renting is like
throwing money away"? - ✔✔It's a myth.
✔✔When is owning a home the best option? - ✔✔When you are committed to the area
and have a down payment.
✔✔How many homeowners nationwide routinely decide not to take the tax deduction for
mortgage interest and property tax because they have minimal expenses, want to file a
basic return, own their home outright, or fail to qualify for the deduction? - ✔✔About 1/2
of homeowners.
✔✔Which statement correctly describes a benefit of home ownership? - ✔✔Home
ownership is a forced savings program that builds assets through mandatory monthly
payments.
✔✔How can you reduce the cost of owning or renting a place to live? - ✔✔Get a
roommate or tenant, either on your own or through a HomeShare program.
✔✔Which factors are likely to influence your home costs for utilities, maintenance, and
insurance? - ✔✔The location, size, and style of your home.
✔✔How can homeowners lower the cost of obtaining insurance? - ✔✔By finding
discounts and doing comparison shopping.
✔✔If you drop your thermostat by one degree, how much will it cut your heating costs? -
✔✔3%
✔✔How does excessive use of bathroom or kitchen fans affect energy bills? - ✔✔They
suck heated or cooled air out of the home, thus increasing utility bills.
AND SOLUTIONS GUARANTEE A+
✔✔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
✔✔Select the correct definition for the "death benefit" of a life insurance policy. - ✔✔The
amount paid if the insured person dies.
✔✔Why is a term life policy often a good choice for members with financial obligations
who are struggling with a tight budget? - ✔✔It's the most affordable.
✔✔Which statement accurately describes features of term insurance and whole life
insurance? - ✔✔Whole life policies build cash value and policy settlement options.
✔✔Why should a member never simply drop a whole life insurance policy? - ✔✔Whole
life policies usually have cash value, or surrender options.
✔✔How do riders affect whole life insurance policies? - ✔✔Riders offer options to
expand or adapt coverage as the member's needs or circumstances change.
✔✔Which of the following riders provides benefits to a member who becomes disabled?
- ✔✔A premium waiver for disability rider covers premiums while a member is disabled.
✔✔What is the meaning of the phrase "buy term and invest the difference"? -
✔✔People should buy a term life policy, compare the cost to a whole life policy, and
then invest the amount they saved.
,✔✔For people without life insurance, now is usually the best time to buy because.. -
✔✔insurance availability declines as people grow older and their health declines.
✔✔How does life insurance improve a family's financial stability? - ✔✔It provides funds
to support a family after the loss of a key wage.
✔✔What are four things members should have in place before establishing an
investment program? - ✔✔An emergency fund, adequate insurance, a savings plan,
and a positive credit history.
✔✔What is the recommended advice regarding saving and investing? - ✔✔Saving
should come first, followed by investing.
✔✔What are the advantages of having savings? - ✔✔Savings offer an insured principal
easily accessed for short-term needs.
✔✔Why is compound interest so important? - ✔✔It gives the member a return on both
the original principal and all the interest that accrues over time.
✔✔What is the "rule of 72" used to determine? - ✔✔The number of years required to
double the investment: 72 divided by the current interest rate.
✔✔What is the rate of return? - ✔✔The percentage gain in value on your investment.
✔✔What is the definition of dividend? - ✔✔The portion of a company's profits paid to
stockholders.
✔✔Why is a savings account considered a liquid asset? - ✔✔The balance can be easily
converted to cash.
✔✔How do investors define risk? - ✔✔Risk is the chance that you will lose the original
investment.
✔✔What is the rate of return on a 401(k) if your employer matches every $1 you invest
with a deposit of 25 cents? - ✔✔25%
✔✔Select the statement that describes two benefits of investing in mutual funds. -
✔✔Mutual funds typically combine diversification with the ability to invest with relatively
small deposits.
✔✔Choose the correct ranking of investments based on typical performance in order of
lower risk to higher risk. - ✔✔Savings account, life insurance, and mutual funds.
, ✔✔Which investment vehicle has traditionally had the highest rate of return? -
✔✔Common stocks over the last 50 years
✔✔When the investor's goal is the preserve the principal, what type of investment
vehicle should be selected? - ✔✔The investor should select the safest investment
options available.
✔✔What should the financial counselor consider when making referrals to a specific
investment advisor? - ✔✔The investment advisor's compensation, professional
designation, and training.
✔✔Which of the following statements accurately describes the belief that "renting is like
throwing money away"? - ✔✔It's a myth.
✔✔When is owning a home the best option? - ✔✔When you are committed to the area
and have a down payment.
✔✔How many homeowners nationwide routinely decide not to take the tax deduction for
mortgage interest and property tax because they have minimal expenses, want to file a
basic return, own their home outright, or fail to qualify for the deduction? - ✔✔About 1/2
of homeowners.
✔✔Which statement correctly describes a benefit of home ownership? - ✔✔Home
ownership is a forced savings program that builds assets through mandatory monthly
payments.
✔✔How can you reduce the cost of owning or renting a place to live? - ✔✔Get a
roommate or tenant, either on your own or through a HomeShare program.
✔✔Which factors are likely to influence your home costs for utilities, maintenance, and
insurance? - ✔✔The location, size, and style of your home.
✔✔How can homeowners lower the cost of obtaining insurance? - ✔✔By finding
discounts and doing comparison shopping.
✔✔If you drop your thermostat by one degree, how much will it cut your heating costs? -
✔✔3%
✔✔How does excessive use of bathroom or kitchen fans affect energy bills? - ✔✔They
suck heated or cooled air out of the home, thus increasing utility bills.
