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
Date: September 19th, 2020
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 […]
Date: September 19th, 2020
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) […]
Date: September 19th, 2020
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 […]
Date: September 19th, 2020
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
Date: September 19th, 2020
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: […]
Date: September 19th, 2020
The Affordable Care Act requires employers with 100 or more employees to provide health insurance on the employees or pay a penalty if at least one employee receives a tax credit and coverage through the Health Insurance Marketplace. This requirement—providing insurance or paying a fine—is known as the A) single-payer solution. B) employer shared responsibility. […]
Date: September 19th, 2020
Under a unit-benefit formula, benefits are a function of both A) earnings and years of service. B) age and earnings. C) age and gender. D) years of service and position within a firm. ANSWER Answer: A
Date: September 19th, 2020
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 […]
Date: September 19th, 2020
Advantages of cafeteria plans include all of the following EXCEPT A) simplicity of benefit administration. B) employees can select benefits that best match their needs. C) reduced taxes for employees. D) greater employer control over increasing benefit costs. ANSWER Answer: A
Date: September 19th, 2020
