A+ Answers



1. Employees of the Hikesman Group are eligible for three months’ maternity leave. According to law, if an employee adopts a child, that employee is eligible for _______ percent of the maternity leave.
A. 0
B. 50
C. 100
D. 25
2. Under which type of group legal expense plan would an employee be expected to pay the complete attorney’s charges?
A. Comprehensive plan
B. Contingency plan
C. Referral and discount plan
D. Access plan
3. Veracruz Corp. is paying heavy dental expenses for employees who have been in the dental plan for only one or two months. Which one of the following options could the company adopt to reduce these expenses?
A. Allow employees to select dental insurance year-round.
B. Establish a late enrollment period in which employees can make their dental selections at a later date.
C. Reduce benefits for employees for a period of time after late enrollment.
D. Increase the benefits directly following enrollment.
4. Adoptions, name changes, and bankruptcies can be covered under
A. FMLA.
B. property and liability insurance plans.
C. cost-plus arrangements.
D. legal expense insurance plans.
5. Which one of the following statements is true of the direct reimbursement approach?
A. It often generates a significant savings for the employer, largely because of lower administrative costs.
B. There is a great degree of control over utilization.
C. The dentist sends the bill for the employee’s visit to the employer.
D. It involves large claims because there’s no cap on benefit amounts.
6. Which one of the following types of alternative funding schemes is aimed primarily at reducing state premium taxes?
A. Premium-delay arrangement
B. Minimum premium plan
C. Retrospective-rating arrangement
D. Cost-plus arrangement
7. When an employer self-funds its company’s benefits, management may choose to outsource some related administrative functions. This sort of arrangement would be covered under a/an
A. ASO contract.
B. self-funding clause.
C. cost-plus scheme.
D. stop-loss coverage plan.
8. An employee who owned 5 percent of a company during the previous year or, during that same year, received a salary of $100,000 or more, would be considered _______ compensated under the Internal Revenue Code (IRC).
A. highly
B. appropriately
C. excessively
D. under
9. If an employer provides a preretirement-counseling program for its employees, then the program is considered a/an
A. legally required social insurance.
B. extra service to employees.
C. form of extra payment to employees.
D. discrimination in favor of older employees.
10. Simpson, Inc. is seeking increased available cash for investment purposes. The company’s chief financial officer (CFO) examines the company’s funding methods for group insurance, and finds a way to use insurance payments for an extra three months. The CFO has most likely opted for a
A. self-funding plan.
B. premium-delay arrangement.
C. cost-plus arrangement.
D. minimum-premium plan.
11. Which one of the following examples is a valid reason for paid time off?
A. Serving in active military duty
B. Conducting research as a faculty member
C. Caring for a sick child
D. Attending a program of education
12. Jen has no formal medical training, but she earns her living helping the elderly with basic tasks like bathing and dressing. What type of care does Jen give?
A. Intermediate care
B. Skilled care
C. Assisted-living care
D. Custodial care
13. Suppose a movie theater provides movie tickets to its employees. This benefit is considered to be a
A. service plan.
B. service award.
C. taxable service.
D. no-additional-cost service.
14. The term de minimus is used in relation to
A. service awards.
B. educational assistance.
C. unemployment benefits.
D. employee discounts.
15. Which one of the following is an example of a wellness program?
A. On-site counseling with a therapist
B. On-site mammogram screenings
C. Access to Alcoholics Anonymous (AA)
D. Treatment for drug abuse
16. Carlos has lived in a long-term care facility for two years. He had to go into the hospital for 10 days. When he was released from the hospital, he had to find a new place to live. What is the most likely reason for his predicament?
A. His care coordination benefit was canceled.
B. His 10-day absence from the facility required that he reapply for long-term benefits.
C. He didn’t have a bed reservation benefit.
D. His respite-care benefits didn’t continue during the hospital stay.
17. Which one of the following group benefit plans most likely uses self-funding more than the other plans?
A. Retrospect-rating plan
B. Short-term disability income plan
C. Long-term disability plan
D. Noncontributory plan
18. Company Y provides the following fringe benefits to its employees. Which of these benefits would be counted as additional income on the employees’ taxes?
A. Employee discounts
B. Preretirement counseling programs
C. Employer-paid travel to look for a house when relocating
D. Membership to the employee fitness center
19. Why would an employer consider having a shorter dental probationary period?
A. To attract and retain new employees
B. To make sure the employees’ dental health is acceptable
C. To reduce the volume of first-year claims
D. To provide care immediately to avoid greater dental problems later
20. Debating the pros and cons of employee child-care plans, Lorraine maintains that the most common
approach is to provide reimbursements to employees for making their own child-care arrangements. Lawrence neither agrees nor disagrees with Lorraine’s contention, but he insists that the number of on-site child care facilities is growing. Who is correct?
A. Neither Lawrence nor Lorraine is correct.
B. Only Lorraine is correct.
C. Both Lawrence and Lorraine are correct.
D. Only Lawrence is correct.