Question 1

Recipients of long-term disability benefits are also eligible to file ADA claims. (The Americans with Disabilities Act of 1990)

Accepted Answer

False

Question 2

An ADEA safe harbor allows employers to reduce the duration of long-term disability benefits as long as the level of benefits are the same for all workers with the same disability. (The Age Discrimination in Employment Act (ADEA)of 1967)

Accepted Answer

The ADEA safe harbor allows employers to reduce the duration of long-term disability benefits as long as the level of benefits are the same for all workers with the same disability.

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 assets invested in a trust fund for a limited period or up to a maximum dollar amount.

Question 4

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 there may be a maximum amount paid for certain procedures.

Question 5

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, including disability insurance and workers' compensation insurance, were not yet established during this time period, leaving injured workers with little support or means of financial assistance.

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 coal miners, and they are eligible for workers' compensation benefits.

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 plans become effective following the end of short-term coverage and a 30 day elimination period. (Long-Term Disability Insurance Programs)

Accepted Answer

The elimination period for long-term disability insurance can vary and is not universally set at 30 days; it often ranges from 30 to 180 days or more, depending on the policy.

Question 9

In 2011,employers generally paid $700 annually per private sector employee for workers' compensation protection. (Cost of Workers' Compensation Insurance)

Accepted Answer

The cost of workers' compensation insurance varies significantly by industry, state, and other factors, and there is no single standard amount like $700 that applies universally to all private sector employees.

Question 10

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 (ASO) plan is a type of disability insurance funding plan that is managed by a third-party claims management company, meaning that the employer or policyholder is responsible for funding the plan, but the third-party company handles the administration and adjudication of claims.

Question 11

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

Accepted Answer

The answer of Employers pay disability benefits from disability insurance...

Question 12

Long-term insurance defines 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

This is the definition of disability used by long-term insurance.

Question 13

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

Accepted Answer

Whole life insurance policies generally have higher premiums than term life insurance policies due to the added benefits and cash value accumulation.

Question 14

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 15

The short-term elimination period ranges from one to twelve months. (Short-Term Disability Insurance Programs)

Accepted Answer

The statement is true.

Question 16

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 or most duties of one's occupation.

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

Policy holders have the flexibility to move money between the insurance and savings components of their universal life insurance policy.

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

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

Accepted Answer

Pregnancy is typically considered a covered condition under short-term disability insurance programs. This allows employees to receive partial income replacement during their maternity leave.

Question 20

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.

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