Insurance Test - 11/12

Ben Herton has employed provided health insurance with a $5000 deductible that covers him and his family. On January 3 of this year, Ben contributed 7,100 to his HSA, the max allowed. On January 27th, Ben's 14 year old daughter had a emergency, Ben incurred $10,000 in expenses. How much of the expenses will not be covered by insurance or Ben's HSA?

$0

Harriot Jacobs earns $140 per day as an associate manager at Praxton Manufacturing. Praxton provides all employees with three sick days a month at full pay. Unused sick pay benefits can be accumulated to a max of 90 days. Harriet has accumulated 5 days of unused sick pay. Praxton also pays premiums on short-term disability

$1,260

Homer Tanner, a foreman at Wellville Steel, pays the premium for long-term disability policy that has a three-month waiting period

2 and 4 only

Generally, sick pay or short term do not extend about how many months

6 months

A qualified long term care does what

?

Common characteristics of a sick play plan include

?

Morch smcidt (true or false)

?

Conservative corp want to provide employees with low cost

A and b (social security and worker's comp)

Common exclusions in long term disability policy include which of the following

All of the above (disability during a time the employee is not under a physician's care, disability caused by a self-inflicted injury, disability beginning before the employee is eligible for plan coverage)

For a single individual contributions may be made by the following methods except

By the employee at the family coverage rate

Advantages of a cafeteria plan include what

Cafeteria plans can be structured to meet a variety of employee benefit needs

Disadvantages of a cafeteria plan include all of the following except

Cafeteria plans provide numerous different benefits to employees in addition to basic benefits shared by all employees

Which of the following steps generally are not involved in setting up a cafeteria plan

Get governmental approval of the plan

Arnold Nash owner of Nash car sales wants to offer his employees a health plan that allows individuals contributions as well as induvial salary reductions and employer contributions. He wants the plan to work in conjunction with high-deductible insurance. Nash should select a

HSA

Which of the following is true regarding HSA funding?

HSA funding is not subject to income tax

High deductible is required with which of the following

Health savings account

Some health economist argue that offering an HSA an alternative to traditional health insurance will eventually increase premiums for traditional health insurance because

Healthy, high-income employees will select the HSA, leaving relatively sicker and older employees in the traditional health plan

Which of the following is true about short term disability plans

It pays a portion of a disabled employee's salary as benefits for up to 6 months

Benefits that are excluded from a cafeteria plan include what

Long-term care insurance, scholarships and fellowships

Mosher Gahn's employer, Ace Accounting and Bookkeeping Services, provides long-term disability insurance for employees.

Mosher will pay income tax on 70% of the benefits received

Common features of long term disability policies include

Only a and b (waiting period of 3 to 12 months before eligibility for benefits, coverage of full-time employees only)

ERISA requirements of long term disability include which of the following

Plan provisions written and communicated to employees in a Summary Plan Document

Which of the following is/are true when comparing short term disability with long term disability

Short-term disability typically covers more employees than long-term disability Short-term disability policies typically are more generous

The benefits offered under cafeteria plans are significantly affected by what

The affordable care act

Wally fishbon made contributions to an HSA while an employee of fishing expedition, Wally retired this year at age 65 and is now enrolled in Medicare. Which of the following is/are true for Wally.

Wally's distributions from his HAS are tax free if used to pay qualified medical expenses

Which of the following is not an advantage of an HSA

When it comes to the 10% penalty for early distributions, HSA's have more exceptions than do IRA's

Walburg Pharmaceuticals is installing a cafeteria plan and is concerned about meeting nondiscrimation requirements. Walburg needs to be sure that its plan

all of the above

Which of the following can an employer choose when designing a short-term disability or sick pay policy?

all of the above

Albert Johnson pays part of the premium for a short-term disability insurance policy through payroll deductions. Albert can deduct the cost of the policy when he flies his personal income tax

false

Baldwin Tire company wants to provide executives with

false

Crocker Technologies wants to provide a sick pay plan that has more favorable benefits for its line workers. Under ERISA, however, such an approach would be deemed discriminatory and thus disallowed

false

Moving on a local pays short term disability 30 employees, these employees are treated as (true or false)

false

Cafeteria plan at blazers industries can contain any of the following except

long-term care insurance

The __ definition of disability is defined as the total engage in every and

qualified for