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.

B

Accepted Answer

COBRA stands for Consolidated Omnibus Budget Reconciliation Act, which requires employers to offer terminated employees the option to purchase continued health care coverage identical to their existing coverage for a certain period of time. This applies to employers providing group or self-funded health coverage.

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.

C

Accepted Answer

Group universal life insurance is a type of group life insurance where the employer pays for the cost of insurance. Any premium payments made by the employee are used to accumulate cash values in the contract. Group AD&D and group term insurance do not accumulate cash values, and group whole life insurance is generally paid for by both the employer and employee.

Question 3

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.

C

Accepted Answer

Modified own-occupation disability insurance initially allows the insured to receive benefits if they are unable to perform their current occupation for a certain period (in this case, two years). After this period, benefits continue only if the insured is unable to perform any occupation for which they are reasonably suited by education, training, or experience. This contrasts with own-occupation policies, which pay benefits if the insured can't perform the duties of their specific occupation, regardless of whether they can work in a different occupation.

Question 4

Which of the following is a fringe benefit not included as compensation?&#10;A)Discounts on services,limited to 30% of the price charged to nonemployee customers.&#10;B)Educational assistance limited to $7,250.&#10;C)Group-term life insurance up to $50,000 of coverage.&#10;D)Overtime meal money.

Accepted Answer

The answer of Which of the following is a fringe...

Question 5

An adoption assistance program is a separate written plan that meets all of the following requirements except:&#10;A)Employees does not have to provide reasonable substantiation.&#10;B)Notice of the program is provided to eligible employees.&#10;C)Program does not pay more than 5 percent of its benefits to shareholders or owners during the calendar year.&#10;D)Specific rules apply to more than 5 percent owners and highly compensated employee.

Accepted Answer

All other options are requirements for an adoption assistance program under IRS regulations. However, employees must provide reasonable substantiation to receive benefits under the program.

Question 6

Which of the following may not receive a fringe benefit?&#10;A)Director.&#10;B)Employee.&#10;C)Independent contractor.&#10;D)Spouse of an employee.

Accepted Answer

The answer of Which of the following may not receive...

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.&#10;A)Cash value / assigning.&#10;B)Cash value / transferring.&#10;C)Death benefit / assigning.&#10;D)Death benefit / transferring.

Accepted Answer

An employee can remove the death benefit from their estate by assigning their group life insurance policy to an irrevocable trust. This process ensures that the death benefit is not considered part of the employee's estate for estate tax purposes.

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?&#10;A)APO.&#10;B)HMO.&#10;C)POS.&#10;D)PPO.

Accepted Answer

HMOs (Health Maintenance Organizations) provide comprehensive health care services to a group of subscribers in return for a fixed premium. They typically require subscribers to choose a primary care physician and obtain referrals for specialized care. APOs (Accountable Care Organizations) are groups of health care providers who come together to coordinate care for a group of patients, usually with the goal of reducing costs and improving outcomes. POS (Point of Service) plans combine features of both HMOs and PPOs (Preferred Provider Organizations), allowing patients to choose between in-network and out-of-network providers at the point of service but with different levels of cost-sharing.

Deck 20: Applications in Employee Benefits Planning