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)

Accepted Answer

Social insurance programs did not exist during this time period, leaving injured workers with no financial support.

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)

Accepted Answer

Short-term disability insurance plans typically define disability as an inability to perform all the duties of one's occupation, not just some of them.

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)

Accepted Answer

Under partial self-funding of disability insurance, employers do pay claims from their own assets invested in a trust fund for a limited period or up to a maximum dollar amount.

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

Accepted Answer

Employer-sponsored disability insurance provides benefits for both work-related and nonwork-related illnesses and injuries, whereas workers' compensation only covers work-related injuries and illnesses.

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)

Accepted Answer

The values in the current Uniform Table were adjusted to reflect lower rates of mortality, not higher, as advancements in healthcare and lifestyle have generally led to increased life expectancies.

Question 6

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

Accepted Answer

Black lung disease is a recognized occupational disease for miners, and they are eligible for workers' compensation benefits if they develop the disease.

Question 7

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

Accepted Answer

Long-term disability insurance plans often include coverage for partial disabilities, not ceasing due to high costs but adapting in terms of premiums and benefits to manage those costs.

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)

Accepted Answer

Long-term disability insurance policies typically define disability as the inability to perform any job for which the individual is qualified based on their education, training or experience.

Question 9

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

Accepted Answer

The statement is incorrect. A term life insurance policy is generally less expensive than a whole life policy because it provides coverage for a specific period of time, whereas a whole life policy covers the insured for their entire life and includes a savings component.

Question 10

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

Accepted Answer

Universal life insurance typically offers more flexibility in premium payments, death benefits, and cash value accumulation than whole life insurance.

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)

Accepted Answer

An Administrative Services Only plan (ASO) is a type of funding arrangement for disability insurance programs in which a third-party administrator (TPA) manages the claims process, but the employer is responsible for funding the benefits.

Question 12

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

Accepted Answer

The answer of Recipients of long-term disability benefits are also...

Question 13

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

Accepted Answer

In 2015, the cost for workers' compensation insurance per employee varied significantly across different states and industries, and the average cost was often much higher than $700 annually. The specific amount depended on factors such as the employer's industry, the company's claims history, and the state's regulations and rates.

Question 14

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

Accepted Answer

Disability benefits are typically paid from disability insurance policies, not regular payroll.

Question 15

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

Accepted Answer

Pregnancy is considered a qualifying condition for short-term disability insurance programs in many companies. Therefore, an employee's pregnancy would be covered under the company's short-term disability insurance program.

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)

Accepted Answer

The exclusion period in short-term disability insurance plans typically refers to the waiting period between the onset of a disability and the commencement of benefit payments, not the period between the date of hire and the date of eligibility for coverage.

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)

Accepted Answer

Under a universal life insurance plan, policy holders can shift money between the insurance and savings components of the policy. This flexibility allows for the policy holder to adjust their coverage and investment options as their needs change over time.

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)

Accepted Answer

Most group life insurance is offered on a contributory basis mainly because it allows for shared cost between the employer and employees, not primarily for tax benefits. Noncontributory plans are fully paid by the employer, which can indeed offer tax advantages, but the choice between contributory and noncontributory plans is more about cost-sharing and encouraging employee participation.

Question 19

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

Accepted Answer

Workers' compensation benefits provide unlimited medical care benefits, but they do have restrictions on the maximum amount paid for some procedures.

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)

Accepted Answer

The statement is true.

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