Deck 6: Employer-Sponsored Disability Insurance, life Insurance, and Workers Compensation

Question 1

In the 1800s and early 1900s,the seriously injured workers left with virtually no recourse because social insurance programs were nonexistent.(Origins of Disability Insurance and Workers' Compensation Insurance)
7.Long-term disability insurance plans become effective following the end of short-term coverage and a 30-day elimination period.(Long-Term Disability Insurance Programs)

Answer 1

True

Question 2

Short-term disability insurance plans usually consider disability as an inability to perform any and every duty on one's occupation.(Short-Term Disability Insurance Programs)

Answer 2

True

Question 3

Under partial self-funding of disability insurance,employers pay claims from their assets invested in a trust fund,for a limited period or up to a maximum dollar amount.(Funding Disability Insurance Programs)

Answer 3

True

Question 4

Employer-sponsored disability insurance is more encompassing than workers' compensation,because its benefits generally apply to both work-related and nonwork-related illnesses and injuries.(Disability Insurance

Question 5

The values in the current Uniform Table were adjusted to reflect higher rates of mortality between 1988 and 2000.(Costs of Group Term Life Insurance)

Question 6

A miner who develops black lung disease is eligible for workers' compensation benefits.(Workers' Compensation Claims)

Question 7

Long-term disability insurance plans used to cover partial disabilities,but ceased due to high costs.(Long-Term Disability Insurance Programs)

Question 8

Long-term disability insurance carriers define long-term disability as an inability to engage in any occupation for which the individual is qualified by reason of training,education or experience.(Long-Term Disability Insurance Programs)

Question 9

A term life insurance policy is considerably more expensive than whole life policy.(Types of Life Insurance Programs)

Question 10

Universal life insurance has less flexibility than whole life insurance.(Types of Life Insurance Programs)

Question 11

An Administrative Services Only plan is a disability insurance funding plan that is handled through a third-party claims management company.(Funding Disability Insurance Programs)

Question 12

Recipients of long-term disability benefits are also eligible to file ADA claims.(Relationships between Company-Sponsored Disability Plans and Benefits Laws)

Question 13

In 2015,employers generally paid $700 annually per private sector employee for workers' compensation protection.(Cost of Workers' Compensation Insurance)

Question 14

Employers pay disability benefits from disability insurance policies or regular payroll.(Disability Insurance)

Question 15

An employee's pregnancy is covered under a company's short-term disability insurance program.(Short-Term Disability Insurance Programs)

Question 16

In short-term disability insurance plans,the exclusion period spans from the initial date of hire to the date of eligibility for coverage.(Short-Term Disability Insurance Programs)

Question 17

Under a universal life insurance plan,policy holders can shift money between the insurance and savings components of the policy.(Universal Life Insurance)

Question 18

Most group life insurance is offered on a contributory basis mainly because the employer enjoys substantially higher tax benefits than they do with noncontributory plans.(Group Term Life Insurance)

Question 19

Although workers' compensation benefits have unlimited medical care benefits,it does specify a maximum amount paid for certain procedures.(Unlimited Medical Care)

Question 20

The short-term elimination period ranges from one to twelve months and the most common elimination period is three months.(Short-Term Disability Insurance Programs)

Question 21

Employer-sponsored disability insurance plans generally supplement legally required benefits established by which law? (Relationships between Company-Sponsored Disability Plans and Benefits Laws)

A)Family Medical Leave Act
B)Employee Retirement Income Security Act
C)Fair Labor Standards Act
D)Social Security Act

Question 22

One of every twenty employees will have a disability that lasts at least 90 days.(Disability Insurance)

Question 23

Long-term disability plans often contain exclusion provisions.(Short-Term Disability Insurance Programs.

Question 24

Workers' compensation laws do not apply to small businesses with fewer than a stipulated number of employees (Coverage of Workers' Compensation Programs)

Question 25

Both discretionary short-term and long-term disability plans sometimes duplicate public disability benefits mandated by state workers' compensation laws and the Social Security Act.(Disability Insurance)

Question 26

The wage-loss approach bases benefit amounts on approximate loss of earning from scheduled injuries.(Types and Amounts of Workers' Compensation Benefits)

Question 27

AD&D does not pay survivor benefits in the case of death by illness.(Accidental Death and Dismemberment Insurance)

Question 28

Second-injury funds are a funding element of workers' compensation programs where claims are associated with two employees with similar injuries.(Financing Workers' Compensation Programs)

Question 29

Prior to the 1960s,establishment funds provided minimal cash payments to workers who became occupationally ill or injured.(Origins of Disability Insurance and Workers' Compensation Insurance)

Question 30

States rely on rating manuals to specify workers' compensation insurance rates based on businesses' payroll size.(Financing Workers' Compensation Programs)

Question 31

Pregnancy and childbirth are not considered as disabilities.(Short-Term Disability Insurance Programs)

Question 32

According to ADA guidelines,which of the following is true? (Relationships between Company-Sponsored Disability Plans and Benefits Laws)

A)Employers can require a longer pre-eligibility period for employees with disabilities
B)Employers cannot exclude qualified employees with disabilities from participating in its' disability retirement plans
C)Employers must offer the same benefits to all under its disability retirement plans
D)Employers must include cost-of-living adjustments on its disability benefits

Question 33

Sick leave policies are separate from disability leave.(Disability Insurance)

Question 34

Becoming injured while using an employer's product to perform work is an instance of dual capacity and the injured employee would be eligible to file a workers' compensation claim.(Employers' Rights under Workers' Compensation Programs)

Question 35

Dual capacity means that a firm may fulfill a role for an employee that is completely different from its role as employer.(Employers' Rights under Workers' Compensation Programs)

Question 36

State compulsory disability laws created workers' compensation programs.(State Compulsory Disability Laws (Workers' Compensation))

Question 37

If a company is participating in workers' compensation programs and complying with applicable regulations,injured employees cannot bring a legal suit against them under any conditions.(Employers' Rights under Workers' Compensation Programs)

Question 38

Compared to life insurance,AD&D generally does not pay survivor benefits in the case of death by illness.(Accidental Death and Dismemberment Insurance)

Question 39

By adding a partial disabilities inclusion,long-term disability carriers cover a portion of income loss associated with paid part-time employment while a disabled person works on a part-time basis in any job.(Long-Term Disability Insurance Programs)

Question 40

Scheduled injuries involve the loss of a member of the body,including an arm,leg,finger,hand,or eye.(Types and Amounts of Workers' Compensation Benefits)

Question 41

In 2015,what percentage of full-time and part-time employees received employer-sponsored life insurance? (Coverage and Costs of Life Insurance)

A)38% full-time,23% part-time
B)70% full-time,30% part-time
C)69% full-time,41% part-time
D)72% full-time,13% part-time

Question 42

These reduce company-sponsored benefits by subtracting a particular percentage of these disability benefits from workers' compensation and Social Security disability plans.(Relationships between Company-Sponsored Disability Plans and Benefits Laws)

A)Elimination provisions
B)Exclusion provisions
C)Limited integration provisions
D)Offset provisions

Question 43

What's it called when an employer intentionally fails to reveal the exposure of a worker to harmful substances? (Employers' Rights under Workers' Compensation Programs)

A)Deliberate and knowing tort
B)Violation of an affirmative duty
C)Deliberate and knowing affirmative duty
D)Violation tort

Question 44

To qualify as a group term life insurance policy,it must insure at least how many full-time employees? (Group Term Life Insurance)

A)20
B)15
C)10
D)25

Question 45

Which of the following laws was NOT mentioned as having a major influence on company-sponsored disability insurance plans? (Relationships between Company-Sponsored Disability Plans and Benefits Laws)

A)Fair Labor Standards Act
B)Age Discrimination in Employment Act
C)Employee Retirement Income Security Act
D)Americans with Disabilities Act

Question 46

Self-inflicted wounds and drug dependency are generally considered as what in most short-term disability insurance plans? (Short-Term Disability Insurance Programs)

A)Partial disability provisions
B)Exclusion provisions
C)Elimination provisions
D)Preexisting condition provisions

Question 47

Briefly discuss the origins of disability insurance and workers' compensation insurance programs in the US.(Origins of Disability Insurance and Workers' Compensation Insurance)

Question 48

Prior to the enactment of workers' compensation laws,injured employees could choose not to pursue compensation,or they could file a lawsuit.List and briefly define the three common-law defenses that employers could mount to earn liability.

Question 49

In 2015,on average,employers spent how much annually per employee to provide life insurance coverage? (Coverage and Costs of Life Insurance)

A)$83
B)$100
C)$120
D)$140
Essay Questions

Question 50

US companies offered life insurance to what percentage full time employees in 2015? (Coverage and Costs of Life Insurance)

A)52%
B)72%
C)60%
D)78%

Question 51

In short-term disability insurance plans,this term refers to the minimum amount of time an employee must wait after becoming disabled before disability insurance payments begin.(Short-Term Disability Insurance Programs)

A)Elimination period
B)Exclusion period
C)Pre-eligibility period
D)Full integration period

Question 52

After an injury,claims to workers' compensation for rehabilitative services usually have to be submitted in what time frame? (Types and Amounts of Workers' Compensation Benefits)

A)6 - 24 months
B)1 - 3 months
C)6 - 12 months
D)3 - 12 months

Question 53

This is a mental or physical disability for which medical advice,diagnosis,care or treatment was received,during a designated period preceding the beginning of disability insurance coverage.(Short-Term Disability Insurance Programs)

A)Pre-eligibility condition
B)Exclusive condition
C)Eliminating condition
D)Preexisting condition

Question 54

When paying permanent partial disability benefits,for unscheduled injuries,this approach bases the amount on the physical or mental loss associated with the injury to a bodily function.(Types and Amounts of Workers' Compensation Benefits)

A)Dismemberment
B)Loss of wage-earning capacity
C)Wage-loss
D)Impairment

Question 55

Most long-term disability insurance plans pay how much after a waiting period of how long? (Long-Term Disability Insurance Programs)

A)70 - 90%,after 6 - 12 months
B)70 - 90%,after 3 - 6 months
C)50 - 70% after 6 - 12 months
D)50 - 70% after 3 - 6 months

Question 56

If an employee suffers a disability that limits the kind of work an individual can perform on an enduring basis,she would qualify for what type of disability income under workers' compensation? (Types and Amounts of Workers' Compensation Benefits)

A)Permanent total disability
B)Temporary partial disability
C)Permanent partial disability
D)Temporary total disability

Question 57

This amendment contains the equal benefit or equal cost principle and bans termination of an employee's long-term disability benefits for active employees based on age.(Relationships between Company-Sponsored Disability Plans and Benefits Laws)

A)Older Workers Benefit Protection Act
B)Retired Workers Protection Act
C)Age Discrimination in Employment Act
D)Older Workers Retirement Act

Question 58

Scheduled and unscheduled injuries are categories used to determine benefits for which type of disability income? (Types and Amounts of Workers' Compensation Benefits)

A)Permanent total disability
B)Temporary partial disability
C)Permanent partial disability
D)Temporary total disability

Question 59

Most short-term disability insurance plans pay employees around how much of their regular pay? (Short-Term Disability Insurance Programs)

A)85 - 100%
B)35 - 50%
C)50 - 67%
D)40 - 59%

Question 60

In 2015,on average,employers spent how much annually per employee to provide short-term disability insurance? (Coverage and Costs of Disability Programs)

A)$80
B)$125
C)$100
D)$140

Question 61

What are the main characteristics of long-term disability insurance? (Long-Term Disability Insurance Programs)

Question 62

Briefly discuss the three types of life insurance policies offered in the US.(Types of Life Insurance Programs)

Question 63

Briefly discuss the types of disabilities recognized under workers' compensation laws.(Types and Amounts of Workers' Compensation Benefits)