Question 1

Which one of the following is not a characteristic of Social Security?

Accepted Answer

A)  Benefits are individually selectable by the covered individual. 
B)  Participation is compulsory. 
C)  It can operate on a pay-as-you-go basis with no prefunding. 
D)  Legislative activity may change the benefits. 
A)  Benefits are individually selectable by the covered individual. 
B)  Participation is compulsory. 
C)  It can operate on a pay-as-you-go basis with no prefunding. 
D)  Legislative activity may change the benefits. A

Question 2

Both Parts A and D of the Medicare program are compulsory.

Accepted Answer

A) True 
 B)False  False

Question 3

Describe the characteristics of a government insurance program.

Accepted Answer

1) participation is generally compulsory, 2) the benefits are predetermined by law, there is no individual choice, 3) the taxing power of the government usually exists to support benefits, 4) benefits can be changed at any time by law, no contract exists.

Question 4

Social Security survivor benefits cannot be paid to:

Accepted Answer

A)  husbands of deceased workers 
B)  wives of deceased workers 
C)  children of deceased workers 
D)  nonprofit charities 
A)  husbands of deceased workers 
B)  wives of deceased workers 
C)  children of deceased workers 
D)  nonprofit charities

Question 5

Self-employed people:

Accepted Answer

A)  are exempt from Social Security 
B)  must pay in 15.3% of their earnings in Social Security taxes 
C)  are not eligible for Social Security 
D)  must pay in 7.65% of their earnings in Social Security taxes 
A)  are exempt from Social Security 
B)  must pay in 15.3% of their earnings in Social Security taxes 
C)  are not eligible for Social Security 
D)  must pay in 7.65% of their earnings in Social Security taxes

Question 6

To receive Social Security retirement benefits one must be:

Accepted Answer

A)  fully insured and of retirement age 
B)  currently insured and of retirement age 
C)  fully insured and meet the definition of disability 
D)  in financial need 
A)  fully insured and of retirement age 
B)  currently insured and of retirement age 
C)  fully insured and meet the definition of disability 
D)  in financial need

Question 7

Medicare has three coverage parts; one part is mandatory, the other two are optional.

Accepted Answer

A) True 
 B)False

Question 8

What are the requirements for receiving Social Security disability benefits?

Accepted Answer

To receive disability benefits, a person

Question 9

Alice dies and is survived by her husband, Steve, and their child, Dawn. Steve and Dawn are each then eligible to receive a monthly Social Security survivor benefit of $1,700. If Steve goes to work and earns $100 more than the maximum monthly earnings limit, what will happen?

Accepted Answer

A)  Steve's $1,700 benefit payment will cease. 
B)  Both Steve's and Dawn's $1,700 benefit payment will cease. 
C)  Steve's benefit payment will be reduced to $1,650. 
D)  Both Steve's and Dawn's monthly benefits will be reduced to $1,650 each. 
A)  Steve's $1,700 benefit payment will cease. 
B)  Both Steve's and Dawn's $1,700 benefit payment will cease. 
C)  Steve's benefit payment will be reduced to $1,650. 
D)  Both Steve's and Dawn's monthly benefits will be reduced to $1,650 each.

Question 10

To have one quarter of coverage in the Social Security program, you must have:

Accepted Answer

A)  worked 3 months 
B)  worked 4 months 
C)  earned a certain amount of covered income 
D)  been retired at least 3 months 
A)  worked 3 months 
B)  worked 4 months 
C)  earned a certain amount of covered income 
D)  been retired at least 3 months

Question 11

Social Security operates on the basis of pooling exposures and predicting losses in advance.

Accepted Answer

A) True 
 B)False

Question 12

Medicare's prescription drug plan:

Accepted Answer

A)  has a $50 deductible 
B)  may negotiate with pharmaceutical companies to get lower medication prices 
C)  must, by law, negotiate with pharmaceutical companies to get lower medication prices 
D)  has a corridor deductible besides a regular deductible 
A)  has a $50 deductible 
B)  may negotiate with pharmaceutical companies to get lower medication prices 
C)  must, by law, negotiate with pharmaceutical companies to get lower medication prices 
D)  has a corridor deductible besides a regular deductible

Question 13

Social Security became law in:

Accepted Answer

A)  1920 
B)  1929 
C)  1935 
D)  1945 
A)  1920 
B)  1929 
C)  1935 
D)  1945

Question 14

Social Security's definition of "disability" is:

Accepted Answer

A)  losing at least an arm, a leg, sight in one eye, or any combination of these 
B)  inability to engage in any gainful employment due to a work-related accident, and that inability must be expected to last for a continuous period of not less than twelve months 
C)  the inability to engage in one's own occupation for a continuous period of not less than twelve months 
D)  the inability to engage in any substantial gainful activity by reasons of any medically determinable physical or mental impairment which can be expected to last for a continuous period of not less than twelve months 
A)  losing at least an arm, a leg, sight in one eye, or any combination of these 
B)  inability to engage in any gainful employment due to a work-related accident, and that inability must be expected to last for a continuous period of not less than twelve months 
C)  the inability to engage in one's own occupation for a continuous period of not less than twelve months 
D)  the inability to engage in any substantial gainful activity by reasons of any medically determinable physical or mental impairment which can be expected to last for a continuous period of not less than twelve months

Question 15

A surviving wife's Social Security benefit ends when her youngest child reaches age 16.

Accepted Answer

A) True 
 B)False

Question 16

The "retirement test" reduces Social Security benefits if there is non-wage (for example, dividend or interest) income in excess of about $6,000.

Accepted Answer

A) True 
 B)False

Question 17

Members of the U.S. Army are covered by the Social Security program.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following benefits is not provided under the Social Security program?

Accepted Answer

A)  Survivor benefits 
B)  Disability benefits 
C)  Retirement benefits 
D)  Welfare payments to poor people 
A)  Survivor benefits 
B)  Disability benefits 
C)  Retirement benefits 
D)  Welfare payments to poor people

Question 19

Social Security eligibility is based on how many ________ are earned.

Accepted Answer

A)  years of full-time employment 
B)  total dollars 
C)  quarters of coverage 
D)  units of insurance 
A)  years of full-time employment 
B)  total dollars 
C)  quarters of coverage 
D)  units of insurance

Question 20

Which of the following groups would not be covered by Social Security?

Accepted Answer

A)  Doctors in private practice 
B)  Professional athletes 
C)  Coal miners 
D)  Certain exempt state employees 
A)  Doctors in private practice 
B)  Professional athletes 
C)  Coal miners 
D)  Certain exempt state employees

Exam 20: Social Security

Which one of the following is not a characteristic of Social Security?

Both Parts A and D of the Medicare program are compulsory.

Describe the characteristics of a government insurance program.

Social Security survivor benefits cannot be paid to:

Self-employed people:

To receive Social Security retirement benefits one must be:

Medicare has three coverage parts; one part is mandatory, the other two are optional.

What are the requirements for receiving Social Security disability benefits?

Alice dies and is survived by her husband, Steve, and their child, Dawn. Steve and Dawn are each then eligible to receive a monthly Social Security survivor benefit of $1,700. If Steve goes to work and earns $100 more than the maximum monthly earnings limit, what will happen?

To have one quarter of coverage in the Social Security program, you must have:

Social Security operates on the basis of pooling exposures and predicting losses in advance.

Medicare's prescription drug plan:

Social Security became law in:

Social Security's definition of "disability" is:

A surviving wife's Social Security benefit ends when her youngest child reaches age 16.

The "retirement test" reduces Social Security benefits if there is non-wage (for example, dividend or interest) income in excess of about $6,000.

Members of the U.S. Army are covered by the Social Security program.

Which of the following benefits is not provided under the Social Security program?

Social Security eligibility is based on how many ________ are earned.

Which of the following groups would not be covered by Social Security?

Introduction to Enterprise Risk Management and Insurance

Risk Identification

Risk Assessment and Pooling

Risk-Handling Techniques: Loss Control, Risk Transfer, and Loss Financing

Risk-Handling Techniques: Diversification and Hedging

Fundamentals of Insurance

Insurable Perils and Insuring Organizations

Insurance Functions

Insurance Markets: Economics and Issues

Insurance Regulation

Insurance Contracts

The Personal Auto Policy

Homeowners Insurance

Professional Financial Planning

Life Insurance Policies

Standard Life Insurance Contract Provisions and Options

Annuities

Health Insurance and Disability Income

Employee Benefits

Unemployment and Workers Compensation Insurance

Commercial Property Insurance

Commercial Liability Insurance

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