Deck 20: Applications in Employee Benefits Planning

Question 1

Which of the following is a mandate that employers providing group or self-funded health coverage are required to offer terminated employees the right to purchase continued health care coverage identical to their existing coverage?

A)ACA.
B)COBRA.
C)HIPAA.
D)PPO.

Answer 1

B

Question 2

Which of the following is a type of group life insurance in which the employer pays for the cost of insurance and any premium payments made by the employee are used to accumulate cash values in the contract?

A)Group AD&D.
B)Group term insurance.
C)Group universal life insurance.
D)Group Whole life.

Answer 2

C

Question 3

Which of the following is a type of group disability insurance which provides benefits for two years at the employees' current occupation and thereafter benefits are only available for total disability?

A)Any-occupation.
B)Current-occupation.
C)Modified own-occupation.
D)Own-occupation.

Answer 3

C

Question 4

Which of the following is a fringe benefit not included as compensation?

A)Discounts on services,limited to 30% of the price charged to nonemployee customers.
B)Educational assistance limited to $7,250.
C)Group-term life insurance up to $50,000 of coverage.
D)Overtime meal money.

Question 5

An adoption assistance program is a separate written plan that meets all of the following requirements except:

A)Employees does not have to provide reasonable substantiation.
B)Notice of the program is provided to eligible employees.
C)Program does not pay more than 5 percent of its benefits to shareholders or owners during the calendar year.
D)Specific rules apply to more than 5 percent owners and highly compensated employee.

Question 6

Which of the following may not receive a fringe benefit?

A)Director.
B)Employee.
C)Independent contractor.
D)Spouse of an employee.

Question 7

An employee may remove the _________ from a group life insurance policy from their estate by _________ their group life insurance policy to an irrevocable trust.

A)Cash value / assigning.
B)Cash value / transferring.
C)Death benefit / assigning.
D)Death benefit / transferring.

Question 8

Which of the following provides a range of comprehensive health care services to a group of subscribers in return for a fixed premium?

A)APO.
B)HMO.
C)POS.
D)PPO.