FICEP CUNA LATEST 2026 EXAM QUESTIONS AND
SOLUTIONS GUARANTEE A+
✔✔What rule of thumb should be used when defining taxable income? - ✔✔If you
benefit financially, you are likely to be taxed for it.
✔✔Which type of qualified IRA withdrawal is exempt from income tax? - ✔✔Roth IRA
withdrawals are exempt.
✔✔How do different tax authorities treat items excluded from federal taxable income? -
✔✔Exclusions vary from state to state.
✔✔What is the first step for effectively managing income taxes? - ✔✔Determining your
filing status.
✔✔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
✔✔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.
SOLUTIONS GUARANTEE A+
✔✔What rule of thumb should be used when defining taxable income? - ✔✔If you
benefit financially, you are likely to be taxed for it.
✔✔Which type of qualified IRA withdrawal is exempt from income tax? - ✔✔Roth IRA
withdrawals are exempt.
✔✔How do different tax authorities treat items excluded from federal taxable income? -
✔✔Exclusions vary from state to state.
✔✔What is the first step for effectively managing income taxes? - ✔✔Determining your
filing status.
✔✔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
✔✔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.
