A Drawback of Flexible Spending Accounts Is That Any Account

question 28

True/False

A drawback of Flexible Spending Accounts is that any account funds must be used to pay for expenses incurred before year's end or the money is lost.

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Definitions:

Face Amount

The nominal or stated value of a financial instrument or insurance policy, due upon maturity or death.

Covered Peril

A risk or event, such as fire or theft, that is specifically insured against under a policy, meaning the insurer has agreed to bear the risk and compensate the insured.

Declaratory Judgment

A court's ruling regarding the legal rights and obligations of the parties in a civil lawsuit, without ordering any specific action or awarding damages.

Prelitigation Payment

Payment made before a legal case is formally initiated, often to settle the matter outside of court.