Penn Foster: 412755RR



Exam: 412755RR
1. What is the main objective of unemployment insurance?
A. Assist an employer in acquiring appropriate personnel in times of need
B. Provide temporary monetary assistance for individuals who are involuntarily out of work
C. Enable the federal government in tracking the unemployment rate
D. Provide funding to Social Security and Medicare programs
2. Which one of the following marketing research techniques is the best to use at a small firm to determine the benefits that employees need?
A. Give employees questionnaires with open-ended questions so that they may express their concerns and opinions about the benefit plan.
B. Conduct a meeting with senior management to determine what benefit changes should be made.
C. Conduct personal interviews with employees, or ask employees to complete questionnaires with closed-ended questions.
D. Conduct personal interviews with employees, and then conduct a competitive analysis to determine what your competitors are offering.
3. Which one of the following statements is true of workers’ compensation laws?
A. Most state workers’ compensation laws cover agriculture workers and domestic employees.
B. All states require employers to purchase workers’ compensation from an insurance company.
C. Workers’ compensation laws are generally based on the principle of liability without fault.
D. Under the previously held standard of the fellow-servant doctrine, any evidence of a worker’s negligence would deny him or her coverage for an on-the-job injury.
4. Martin is a 63-year-old fully insured employee. Which one of the following statements is true of his 65year-old wife and her Part A Medicare?
A. She will pay through the old age and survivors’ trust fund.
B. She will pay monthly premiums and will be supplemented from federal revenues.
C. She will pay through a flat tax on income up to a certain amount.
D. She will not have to pay for her Part A Medicare.
5. Before the benefit-planning process begins, you should establish
A. bids from outsourcing vendors.
B. survey questions.
C. medical insurance rates.
D. objectives.
6. Which one of the following methods is becoming the increasingly accepted method for determining
employee benefit needs?
A. Marketing research
B. Competitor analysis
C. Collectively bargained benefits
D. Employer perception of employee needs
7. The Social Security Act was enacted in
A. 1945.
B. 1940.
C. 1935.
D. 1950.
8. At what age do disabled widows and widowers become eligible for Medicare Part A at no cost?
A. 50
B. 40
C. 60
D. 30
9. Which one of the following objectives is most appropriate for an employer to use with the benefit plan that it offers?
A. To establish a holiday bonus plan for the years 2012 and 2013
B. To implement an annual increase of 3 percent in the salary of management employees
C. To provide Prudential medical insurance to all employees
D. To establish and maintain an employee benefit program that rewards the efforts of the employees
10. Which one of the following statements is true of disability benefits?
A. Disability benefits are subject to a waiting period.
B. A disabled worker must have a disability that has lasted, or is expected to last, at least 36 months.
C. Disabled workers are ineligible to receive benefits under Social Security if they are disability insured.
D. Payments begin with the twelfth full calendar month of disability.
11. What does the term pay-as-you-go mean in relation to the method by which Social Security pays benefits?
A. Taxes on the benefits of retired people are used to pay benefits to current beneficiaries.
B. Taxes on current workers are used to pay benefits to current beneficiaries.
C. General revenues are used to pay Social Security benefits.
D. Monthly premiums paid by all workers are used to pay benefits.
12. Of the following choices, which one is a benefit in the cost of services to employees category?
A. Jury duty

B. Educational assistance

C. Free parking
D. Vacations
13. If either parent of a student under the age of 18 died today, the student would would most likely qualify for _______ benefits.
A. medicare
B. survivors
C. disability
D. retirement
14. If unemployment were high, and the Social Security taxes being collected weren’t enough to pay benefits, the government can turn to _______ fund reserves to get money to pay these benefits.
A. U.S. Treasury emergency
B. Social Security and Medicare trust
C. employee pension
D. unemployment insurance
15. If you were laid off from your job and became temporarily disabled while still unemployed, which of the following states would you hope to be living in?
A. Ohio
B. Florida
C. Alabama
D. New Jersey
16. Edward Marchand, the owner of Archway Manufacturing, provides on-site ATMs and dry cleaning pick-up for his employees. In doing so, Mr. Marchand is taking a _______ approach to employee benefit planning.
A. marketing research
B. collective bargaining
C. work/life
D. life-cycle
17. The term primary insurance amount (PIA) refers to the amount that a/an
A. worker receives each month if he or she retires at full retirement age.
B. employee must earn to become fully insured under Social Security.
C. employee must pay toward health insurance.
D. dependent spouse receives at the age of 62.
18. Carla just started a new job. She’s currently in a probationary period in which she’s not eligible for medical insurance. Which one of the following options can Carla use, at her expense, to fill the gap until her benefits begin?
A. ERISA
B. COBRA
C. PPO
D. HMO
19. Which one of the following factors has most contributed to the high cost of employee benefits?
A. Medical expense benefits
B. Life insurance benefits
C. Paid vacations
D. Long-term disability coverage
20. In most states, if an employee becomes involuntarily unemployed because of a layoff, his or her unemployment benefits will generally run out in a maximum of _______ weeks.
A. 26
B. 39
C. 45
D. 52