AFIP Cheat Sheet 2026

The 30 highest-yield AFIP facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. Which federal law requires lenders to disclose the Annual Percentage Rate (APR) to borrowers before finalizing a loan? → Truth in Lending Act (TILA)
2. Which regulatory requirement is UNIVERSAL across all Certified Association of Finance & Insurance Professionals practice settings? → Maintaining current certification and continuing education
3. Which documentation practice BEST demonstrates regulatory compliance for AFIP certified professionals? → Maintaining organized, dated, and signed records of all activities
4. When a lender cancels a portion of a customer's auto loan (e.g., after repossession), the canceled amount is reported to the borrower on which IRS form? → Form 1099-C
5. What is the main purpose of term life insurance? → Provide coverage for a limited time
6. What is the benefit of setting SMART financial goals? → They are specific and trackable
7. In financial needs analysis, 'estate preservation' refers to: → Protecting assets and ensuring debts don't erode the wealth passed to heirs
8. Under the FTC's Used Car Rule and related ethical standards, what must dealers provide to customers regarding vehicle history and condition? → A Buyers Guide with warranty information prominently displayed on the vehicle
9. What is 'tax-loss harvesting' as a strategy for F&I professionals advising clients on investment accounts? → Selling securities at a loss to offset capital gains and reduce tax liability
10. A customer says they need to 'think about it' after a F&I presentation. What is the most effective response? → Ask what specific concerns they have so you can address them
11. Which risk management approach is MOST effective for AFIP professionals when evaluating potential workplace hazards? → Proactive hazard identification and assessment
12. Effective communication between Certified Association of Finance & Insurance Professionals professionals and stakeholders requires which essential element? → Adapting communication style to the audience while maintaining accuracy
13. Which of the following best describes the 'assumptive close' technique? → Proceeding as though the customer has already agreed to purchase the product
14. What is the primary tax advantage of a Traditional IRA contribution for an eligible U.S. taxpayer? → Contributions may be tax-deductible, reducing current taxable income
15. What is the MOST important principle of professional documentation in Certified Association of Finance & Insurance Professionals practice? → Recording information accurately, objectively, and in a timely manner
16. Why is client confidentiality important? → To protect client privacy
17. What is the BEST way for a Certified Association of Finance & Insurance Professionals professional to stay current with regulatory changes? → Monitor regulatory bodies, attend CE, and participate in professional associations
18. Which of the following is an example of a 'third-party story' sales technique in F&I? → Sharing how a similar customer benefited from a product after an unexpected repair
19. Credit life insurance offered through an F&I department is primarily designed to: → Pay off the outstanding loan balance if the primary borrower dies
20. What is the PRIMARY reason for regulatory compliance in the Certified Association of Finance & Insurance Professionals profession? → To protect public safety, ensure quality, and maintain professional integrity
21. When conducting a financial needs analysis, what is the primary purpose of gathering a customer's monthly income information? → To assess their ability to afford protection products and identify coverage gaps
22. In the context of vehicle sales, which tax is typically calculated as a percentage of the vehicle's purchase price and collected at the time of sale? → Sales tax
23. A balloon payment loan in the context of auto financing means: → A large lump-sum payment is due at the end of the loan term
24. When conducting a risk assessment for AFIP operations, which factor should receive the HIGHEST priority? → Probability and severity of potential harm
25. A customer's VSC requires repairs be authorized before work begins. The repair shop starts work without getting authorization. What is the most likely outcome? → The claim may be denied because prior authorization is a condition of coverage
26. In Certified Association of Finance & Insurance Professionals practice, what is the FIRST step when a safety hazard is identified in the workplace? → Immediately secure the area and report the hazard
27. A customer financing a vehicle through a dealership is protected from discriminatory credit practices primarily by which federal law? → The Equal Credit Opportunity Act (ECOA)
28. What does 'CSI' stand for in the context of automotive F&I and client management? → Customer Satisfaction Index
29. Which of the following best describes a 'stated amount' provision in a vehicle insurance policy? → The insurer pays whichever is less: ACV, cost to repair, or the stated amount
30. In AFIP practice, what happens when regulations are updated? → Professionals must update knowledge and practices to meet new requirements