Beta Corporation has 1,000 employees eligible to participate in the firm’s pension plan, and 100 of these employees are considered highly compensated. All of the highly compensated employees are covered by the plan. What is the minimum number of the 900 non-highly compensated employees who must be covered by the plan in order for the […]
Which of the following statements concerning defined contribution pension plans is (are) true? I. The contribution rate is fixed. II. The retirement benefit varies. A) I only B) II only C) both I and II D) neither I nor II ANSWER Answer: C
Which of the following is a characteristic of a health maintenance organization (HMO)? A) unlimited choice of health-care providers B) no premiums until care is provided C) narrow, limited, medical services provided D) emphasis on cost containment ANSWER Answer: D
Which of the following statements about retirement benefits under pension plans is true? A) Under a flat percentage of annual earnings defined benefit formula, each employee receives the same dollar benefit. B) A benefit using final pay is usually based on an employee’s earnings during the last month of plan participation. C) A unit-benefit formula […]
Which of the following statements is (are) true with regard to group life insurance? I. Most group life insurance is whole life coverage. II. Most group life insurance plans allow a modest amount of life insurance on the employee’s spouse and dependent children. A) I only B) II only C) both I and II D) […]
All of the following are potential disadvantages to employees covered by a money-purchase pension plan EXCEPT A) The contribution rate by the employer is uncertain. B) The retirement benefit can only be estimated in advance of retirement. C) The benefit formula may produce an inadequate benefit if an employee enters the plan at an older […]
Which of the following is a provision of the Affordable Care Act? A) strengthening the use of pre-existing conditions exclusions B) prohibition of harmful practices by insurers. C) introduction of annual and lifetime limits to control costs D) elimination of flexible spending accounts ANSWER Answer: B
Which of the following statements about the protection provided by the Pension Benefit Guaranty Corporation is (are) true? I. Only defined benefit plans are insured. II. Only benefits that are not yet vested are guaranteed. A) I only B) II only C) both I and II D) neither I nor II ANSWER Answer: […]
Which of the following statements about group short-term disability income plans is true? A) Most plans have a short elimination period for accidents but cover sickness from the first day of disability. B) Disability is usually defined in terms of a worker being unable to work in any substantial, gainful, employment. C) The amount of […]
All of the following statements about cost controls in dental insurance plans are true EXCEPT A) The coinsurance percentage used may vary by type of dental service. B) Cosmetic dental work is usually excluded. C) The limit on benefits may be expressed as an annual limit or as a lifetime limit for certain types of […]
