Deck 12: Employee Benefits and Safety Programs

Question 1

Which of the following employee benefits provides compensation for 26 to an employee who lost their job due to no fault of their own?

A) Long term disability insurance
B) Workers' compensation
C) Unemployment insurance
D) Social security
E) Medicare

Answer 1

C

Question 2

If an employer decides to self fund their insurance plan:

A) they contract with a carrier such as HealthAmerica or Blue Cross.
B) they may avoid having to follow some state requirements related to benefits.
C) they generally incur higher costs overall.
D) they can avoid paying premiums and taxes on those premiums.
E) catastrophic illnesses are not a concern because there is always sufficient funds in the plan to pay for those expenses.

Answer 2

D

Question 3

In order to be eligible for unemployment insurance an individual must do all of the following EXCEPT:

A) register with their state's employment service for reemployment assistance or training program information.
B) decline job offers for 26 weeks in order to remain eligible.
C) file a claim with the appropriate state unemployment insurance agency.
D) follow guidelines such as reporting income and job offers in order to remain eligible for benefits.
E) meet their state's eligibility requirements.

Answer 3

B

Question 4

A health insurance program available to those over the age of 65 or to those who are disabled is known as:

A) a pension plan.
B) an HMO.
C) a traditional health insurance plan.
D) Medicare.
E) short term disability insurance.

Question 5

All of the following are accurate statements about voluntary benefit programs EXCEPT:

A) if the employer choses to offer these programs employees are required to enroll in them to ensure they have health insurance coverage.
B) are also known as discretionary plans because it is the employer's choice as to whether or not they offer them.
C) focus on employee health and wellness.
D) include retirement plans such as pensions and 401(k)s.
E) offer group insurance plans to employees at a lower cost than if they had to purchase them on their own.

Question 6

The purpose of consumer driven health plans is:

A) to provide access to a health insurance plan but have the employee pay the full cost.
B) to pay an employee wages when they lose time away from work for a personal illness or injury.
C) to give employees responsibility for their health care costs so that they pay more attention to their health and make better health care decisions.
D) to require the employee to select a primary care physician who can provide all of their health care needs.
E) to offer only a high deductible plan which will decrease employees' use of the health insurance plan.

Question 7

All of the following statements are accurate regarding health reimbursement accounts EXCEPT:

A) employees can have both an HRA and HSA.
B) the employee cannot contribute money towards the HRA.
C) HRAs are tax deductible to the employer.
D) when an employee retires they can still access the money to pay for medical expenses.
E) when used in combination with a HDHP health care costs are more controlled.

Question 8

John, a heavy smoker and an employee of a local utilities company, recently found out that he has lung cancer. The cost of his medical treatments would be covered under:

A) a traditional health care plan.
B) the Black Lung Benefits Act.
C) the Energy Employees Occupational Illness Compensation Act.
D) Workers' Compensation.
E) unemployment insurance.

Question 9

Money can be deposited into a ________ by both the employer and employee and used by the employee to pay for health care related expenses.

A) health savings account
B) high deductible health plan
C) health reimbursement account
D) traditional health care plan
E) self funded plan

Question 10

Jose is enrolled in his employers health insurance coverage. He went to the doctor this morning and had to pay $85.00 for his office visit because he had not yet met his annual deductible of $500. Which of the following types of plans does Jose most likely participate in?

A) HMO plan
B) POS plan
C) Traditional health care plan
D) PPO plan
E) Health Reimbursement Account plan

Question 11

All of the following statements accurately describe a managed care plan EXCEPT:

A) the employee must select a primary care physician who serves as a gatekeeper.
B) employees must meet a high deductible before coverage takes effect.
C) under an HMO medical treatments are covered as long as they are provided by a physician designated in the plan.
D) under a PPO the employee pays a higher copay if the physician is not considered to be in network.
E) the plans generally limit how much the employee has to pay out of pocket for their medical costs.

Question 12

A catastrophic health care plan which does not pay for the first few thousand dollars of an individual medical costs each year and only pays when the employee has a major medical issues is knowns as a:

A) health savings account.
B) high deductible health plan.
C) health reimbursement account.
D) traditional health care plan.
E) self funded plan.

Question 13

All of the following are mandatory employee benefits EXCEPT:

A) Long term disability insurance
B) Workers' compensation
C) Unemployment insurance
D) Social security
E) Medicare

Question 14

An employer can reduce its prescription drug costs by:

A) creating a two tiered copay system that requires the employee to pay a higher copay for brand name drugs.
B) requiring employees to use generic brand rather than name brand drugs.
C) using a formulary list that identifies the only drugs which will be covered under the plan.
D) requiring employees to use a mail order service to purchase long term medications.
E) all of the above.

Question 15

Which of the following are the most important considerations when creating a benefits program?

A) Employer cost and convenience to employees
B) Appropriateness of programs for your employees and regulatory requirements
C) Employee cost and availability of physicians to the employee and their family
D) Employee eligibility and coverage termination
E) Determining safety guidelines and preventing work place violence

Question 16

Ellen fell at work and twisted her ankle. She reported the accident to her supervisor, received appropriate medical treatment, and had to miss 3 days of work. The cost of her medical bills would be covered under:

A) a self insured health care plan.
B) a preferred provider organization plan.
C) workers' compensation.
D) unemployment insurance.
E) Medicare.

Question 17

A wellness program generally includes which of the following?

A) Dental insurance
B) Vision insurance
C) Health maintenance organization plan
D) Health risk assessment
E) Health savings account

Question 18

All of the following statements are accurate in regard to workers' compensation EXCEPT:

A) the federal government has no involvement in the administration or funding of workers' compensation programs.
B) it was originally created to cover civilian employees who worked for the federal government.
C) it provides survivor benefits to dependents of workers who die due to work-related accidents or illnesses.
D) it pays for the cost of medical bills related to work related injuries and illnesses, while unemployment compensation covers any lost wages.
E) employers in most states are required by law to provide workers' compensation insurance to all employees.

Question 19

All of the following statements about Social Security are accurate EXCEPT:

A) the program is funded by payroll taxes which both the employee and employer pay.
B) it is intended to fully provide retirement or disability income to retired or disabled workers.
C) upon retirement an employee receives Social Security based on a percentage of their average lifetime earnings.
D) most individuals must work for at least 10 years in order to receive full credit towards the program.
E) it is a tax which is considered part of an employee's FICA tax that is withheld from their paycheck.

Question 20

If an employer offers an HDHP which has a monthly premium of $400 and a deductible of $5000 and also offers a traditional health care plan that has a monthly premium of $800 and a $1000 deductible, what is the difference in the total annual cost (premium and deductible) to the employee and which plan should they choose?

A) $200; traditional health care plan
B) $400; traditional health care plan
C) $800; HDHP
D) $4000; HDHP
E) $4800; HDHP

Question 21

Emma is planning for her retirement and wants to have additional insurance which will pay for any additional help she may need some day with regard to her own personal care such as eating and bathing. Emma should consider enrolling in ________ insurance.

A) long term disability
B) long term care
C) short term disability
D) life
E) point of service

Question 22

Your employee Gail arrives late to work her evening shift at 3:15 p.m. You observe her stumble a few times and then notice later that she has fallen asleep at her work station. When you approach her she smells like what seems to be alcohol. What is your next step?

A) Discipline Gail for arriving late and then send her back to work.
B) Wake up Gail and send her home, telling her she needs to arrive sober to work tomorrow.
C) Continue to monitor Gail during the shift to see if she wakes up and then talk to her when she does.
D) Wake Gail and confront her in private about her tardiness and the behavior your observed and refer her to the EAP before sending her home for the rest of the shift.
E) Call the police because Gail obviously drove to work under the influence of alcohol.

Question 23

In a cash balance plan the employer credits the employee's retirement account with a pay credit and an interest credit. For this reason a cash balance plan is a type of:

A) defined benefit plan.
B) defined contribution plan.
C) 401(k) plan.
D) self funded plan and 401(k) plan.
E) both a defined benefit plan that operates like a defined contribution plan.

Question 24

Under OSHA, employers are responsible for all of the following EXCEPT:

A) implementing all of OSHA's ergonomic rules.
B) notifying employees about OSHA standards.
C) provide a work place which is safe and free of hazards.
D) allow OSHA to inspect as needed or required.
E) report any event that results in 3 or more employees being hospitalized.

Question 25

All of the following are examples of life management benefits EXCEPT:

A) accidental death and dismemberment insurance.
B) paid time off.
C) long term care insurance.
D) life insurance.
E) financial planning.

Question 26

When designing an educational assistance program, an organization should consider:

A) that employees must pay taxes on all the money given to them for educational expenses.
B) the program must include all employees and not just the highly compensated.
C) requiring an employee to work for the organization for a certain period of time after receiving the assistance helps insure a return on their investment.
D) B and C are correct.
E) All of the above are correct.

Question 27

Which of the following regulations requires an employer to have a written plan document the pension benefits that are provided to employees?

A) COBRA
B) HIPAA
C) ERISA
D) OSHA
E) FMLA

Question 28

Employee assistance programs are intended to:

A) help employees deal with personal or family issues they may be impacting their work.
B) increase employee utilization of the health insurance plan.
C) discipline employees who have attendance programs.
D) train managers how to counsel employees with substance abuse problems.
E) provide health and fitness programs to employees.

Question 29

In order to be successful a wellness program must include all of the following EXCEPT:

A) use incentives which encourage people to use the program.
B) remove management staff from being involved so that it is an employee-owned program.
C) have a committee or team which designs and promotes the program.
D) assess what the needs of the employees are to ensure the appropriate programs are offered.
E) have an organizational culture which supports the program and employee's who participate in it.

Question 30

Under which of the following type of retirement plans is the size of the employee benefit most accurately known?

A) 401(k) plan
B) Defined contribution plan
C) Contributory retirement plan
D) Defined benefit pension plan
E) Noncontributory retirement plan

Question 31

Short term disability, if offered by the employer, generally provides a certain percentage of an employee's income for:

A) 14 days.
B) 30 days.
C) 30 to 90 days.
D) 13 to 26 weeks.
E) until retirement age.

Question 32

When an employee is permitted to chose only the benefits that they really want to participate in from a full list of benefit plans it is known as a/an:

A) employee assistance program.
B) employee wellness program.
C) traditional health care plan.
D) flexible benefit plan.
E) preferred provider organization.

Question 33

Two employees were working on a high scaffolding when the break released and caused both employees to fall 15 feet onto a concrete floor. Both employees were taken to the emergency room and the other was hospitalized due to needing surgery on his leg. The employer is required to:

A) contact OSHA to report the incident.
B) document the injuries on the OSHA Form 300.
C) document the details of what happened on OSHA Form 301.
D) Both A and B
E) Both B and C

Question 34

Which of the following might be a potential pitfall of offering a cafeteria plan?

A) Poor communication and education regarding the benefit offerings can lead to a decrease in employee satisfaction.
B) Employees may choose more items than necessary if they don't fully understand the benefit offerings.
C) An increase in employee turnover may occur if the program is not handled correctly.
D) The employer can incur high administrative costs.
E) All of the above

Question 35

If the employer alone contributes money to an employee's retirement account based on a formula using their years of service and income this is known as a/an:

A) contributory retirement plan.
B) defined contribution plan.
C) 401(k) plan.
D) IRA
E) defined benefit pension plan.

Question 36

Jack has worked for his employer for 25 years and was making $50,000 at the time he retired. His employer uses 2% to determine the amount of retirement income employees will earn. Based on this information how much will Jack earn each year after her retires?

A) $12,000
B) $12,500
C) $25,000
D) $50,000
E) $62,500

Question 37

QRS Industries offers a pension plan and requires their employees to work for them for 7 years before they are fully vested. Once an employee is vested:

A) the employer cannot make any changes to the pension plan.
B) they must work there until retirement age to get access to the pension funds.
C) they own 100% of their pension money.
D) they can contribute money to the pension on a pre-tax basis.
E) None of the above are correct.

Question 38

Rhonda is considering participating in her employer's 401(k) plan because they offer a match of $0.50 to each $1.00 Rhonda contributes up to 2%. Rhonda should consider all of the following before deciding to participate EXCEPT:

A) Rhonda must contribute 4% in order to get the full 2% match.
B) Rhonda's contributions to the 401(k) are taken off of her payroll check on a pre-tax basis.
C) If Rhonda is over age 50 she can make "catch up" contributions to her 401(k).
D) Rhonda is limited to contributing $15,000 each year.
E) The money in the 401(k) is only taxed upon withdrawing the money at retirement.

Question 39

The ________ was created by the federal government to insure defined benefit plans and provides pensions to employees at a maximum amount per year.

A) ERISA
B) Pension Benefit Guaranty Corporation
C) Pension Protection Act
D) COBRA
E) Older Workers Retirement Protection Act

Question 40

An employer is legally required to provide which of the following time off benefits?

A) Vacation days
B) Sick days
C) Bereavement time
D) Holidays
E) None of the above

Question 41

Employers have 24 hours following a work related death of an employee or a work related accident which lead to the hospitalization of three or more employees to report the information to OSHA.

Question 42

A large organization which pursues a differentiation strategy will most likely offer:

A) vision and dental insurance.
B) paid time off.
C) free lunch program.
D) on site fitness center.
E) all of the above.

Question 43

EFG Manufacturing is planning to temporarily lay off several employees due to the economic downturn. Which of the following questions should it ask when determining how to proceed?

A) Will we provide continuing health insurance coverage to everyone until they are called back to work?
B) How will their retirement accounts be handled while they are not working?
C) Will we provide unemployment insurance to those laid off?
D) A and B are correct.
E) All of the above are correct.

Question 44

To "send every worker home whole and healthy every day" is the mission of HIPAA.

Question 45

OSHA's top priority is to respond to employee complaints about unsafe or unhealthy work conditions.

Question 46

Alan's position was eliminated and he was downsized from his employer. At the time he left he was enrolled in the employer's health and dental plans. Alan and his wife can continue their coverage through COBRA for:

A) 12 months.
B) 18 months.
C) 20 months.
D) 36 months.
E) indefinitely as long as they pay the full premium.

Question 47

In global organizations all of the following are typically True EXCEPT:

A) offering a health insurance benefit is common across countries.
B) social insurance programs in other countries, not just the U.S., will be struggling in several years.
C) executive ransom and kidnap insurance is common for multinational employees.
D) overseas country typically offer generous time off programs.
E) supplemental health plans are being offered more with the increase of health care costs.

Question 48

All of the following are accurate statements regarding HIPAA EXCEPT:

A) it includes provisions that only allow those who need to have access to an individuals medical information to access it.
B) the law permits coverage under a prior health plan to count for meeting a preexisting condition requirement under a new plan as long as coverage is transferred within 63 days.
C) it permits an employee's children under the ages of 18 to continue their health insurance coverage.
D) an employer cannot share any health related information about employees with anyone else without the employee's permission.
E) it permits employees to have copies of the medical records upon request.

Question 49

A cash balanced plan allows the employee to take the account balance in a lump sum payment if they are vested at the time they retire, or they may draw annual payments from the account.

Question 50

COBRA is a non-profit organization created by the federal government that insures defined benefit plans.

Question 51

The design of a secretary's work station or the proper lifting technique which should be used by a warehouse worker are both examples of ergonomic issues in the work place.

Question 52

All of the following work force characteristics can impact how an employer designs its benefits program EXCEPT:

A) Age
B) Compensation level
C) Marital status
D) Gender
E) Religion

Question 53

OSHA regulations as it relates to telecommuting employees include all of the following EXCEPT:

A) employers are not expected to inspect home office.
B) employers are not liable for home office.
C) OSHA will inspect home offices as issues are reported.
D) if a telecommuting employee injuries themselves while working on the job that injury must be reported.
E) telecommuters should be provided the same safety training as other employees.

Question 54

In order to foster a culture which supports safety initiatives an organization should:

A) exclude customers from getting involved since they do not understand OSHA regulations.
B) educate employees just as injuries occur in order to prevent them in the future.
C) provide comprehensive safety organization and training as well as an on-going awareness programs.
D) create a program developed by management staff because they are most familiar with injury and safety statistics of the organization.
E) avoid the use of safety committees as it is generally difficult to get employees to agree on what needs to be done.

Question 55

Allowing employees to choose what they want to purchase from a menu of benefit offerings is known as a flexible benefit plan.

Question 56

In order to accommodate the needs of the aging work force organizations could:

A) offer exercises classes that focus on strength and flexibility training.
B) adjust work stations so that optimal lighting is used.
C) use larger font in procedure and operating manuals.
D) providing lift assist devices for those who work in jobs which require heavy lifting.
E) All of the above

Question 57

Due to the health and wellness needs of retirees more and more companies are offering retiree health insurance programs.

Question 58

A defined contribution plan, such as a 401(k), gives the employee the power to decide how to invest their money within the funds offered in the plan.

Question 59

A company pursuing a cost leadership strategy will most likely cut safety programs in order to reduce unnecessary spending.

Question 60

If an organization is pursuing a cost leadership strategy they will most likely offer:

A) a basic health insurance plan.
B) a variety employee wellness programs.
C) an employee assistance program.
D) educational assistance.
E) pension plan.

Question 61

Health insurance for retirees age 65 and older or those who are disabled is part of ________ and known as as ________.

Question 62

When considering employees' benefits needs it is helpful to refer to the theory of motivation known as ________ , that includes thing such as safety, security, and self esteem.

Question 63

Distributive justice is less of a predictor of employee satisfaction with regard to the benefits themselves than procedural justice.

Question 64

As the work force ages employers must be aware of changes in the work environment that might have to occur such as adapting work stations to an older workers needs.

Question 65

A social insurance which covers workers who have been injured on the job by paying for lost wages and medical expenses is known as ________.

Question 66

Workers compensation laws do not protect employees who telecommute since they are not on the organization's property.

Question 67

If an employee loses their job through no fault of their own they may be eligible for ________.

Question 68

In a loose labor market employers need to be more creative in regard to what types of benefits they offer in order to attract applicants.

Question 69

When conducting merger or acquisition benefit plan offerings may be changed to meet the needs of the new organization.

Question 70

As the work force becomes more diverse organizations must become more creative in the types of benefits they offer and ensure that employees perceive their benefit offerings as fair to everyone.

Question 71

Technology has impacted employee benefits through use of an employee self service took which allows employees in some organizations to manage their benefit selections on line.

Question 72

President Roosevelt signed the ________ into law as a way to take care of workers in their later years.

Question 73

An organization which follows a differentiation strategy is more likely to have elaborate wellness programs and other non-direct compensation programs.

Question 74

Safety standards are followed and enforced the same way for both domestic and international companies in order to comply with OSHA.

Question 75

In general, cultural differences do not impact the offering of such benefit plans as health and dental insurance because they are so common throughout industries and countries.

Question 76

Canada is an example of a country which has encouraged employees to wait longer to retire or follow a partial retirement plan due to the lack of funds available in their social insurance program.

Question 77

A global organization may pursue a benefits equalization approach in order to keep an expatriate "whole" in regard to their benefit plans if the regulations related to benefits differ in their host country that significantly impact what the employee may be eligible for ore required to participate in.

Question 78

Employees' attitudes about safety at work are impacted most by the organizational culture rather than by the safety rules themselves.

Question 79

Employees at medium to large companies tend to have greater access to health care benefits.

Question 80

Employees who work for large non-profit organizations tend to have the highest level of benefits of employees in any industry.