RMIN 4000 exam 3

Which of the following statements about the characteristics of social insurance programs is true? A) Benefits are loosely related to a workers earnings. B) Benefits are paid primarily on the basis of individual equity. C) Participation in social insurance programs is voluntary. D) Social insurance programs must be fully funded at all times to pay required benefits.

A) Benefits are loosely related to a workers earnings.

As of this year, Brad, age 50, has 40 credits under the Social Security program. These credits were all earned in the last 10years. What is Brads insured status under the program? A) He is currently and fully insured. B) He is currently insured, but not fully insured. C) He is fully insured, but not currently insured. D) He is neither currently insured nor fully insured.

A) He is currently and fully insured.

Which of the following statements about Medigap policies is(are) true? I. Insurers are required to have an open enrollment period of 6 months from the date an applicant first enrolls in Medicare Part B and is age 65 or older. II. Most policies are of limited value because they largely duplicate benefits already provided by Medicare.

A) I only

Which of the following statements about problems and issues in workers compensation insurance is(are) true? I. The cost of medical care under workers compensation continues to rise. II. Enactment of workers compensation statutes has eliminated litigation with respect to work-related illnesses and injuries.

A) I only

Which of the following statements about the Medicare prescription drug benefit is(are) true? I. Beneficiaries select a prescription drug plan and pay monthly premiums, with the premium reduced or waived for low-income beneficiaries. II. The benefit provides first-dollar coverage of prescription drugs up to a maximum of $10,000 per year, but no coverage after $10,000.

A) I only

Which of the following statements about the elements of negligence is(are) true? I. The negligence of the tortfeasor may arise from a failure to act. II. The damage that results must be in the form of property damage.

A) I only

Which of the following statements about the financial status of Medicare Part A is(are) true? I. Part A hasserious financial problems. II.Reforms instituted by Congress have reduced Part A expenditures in recent years.

A) I only

Which of the following statements about the financing of OASDI and Medicare is(are) true? I. There is a maximum taxable wage base for OASDI. II. There is a maximum taxable wage base for Part A of Medicare.

A) I only

Which of the following statements about the legal obligations of a property owner is(are) true? I. A property owner must inspect the premises for the benefit of an invitee and correct any unsafe conditions. II. A property owner has the right to set a trap designed to injure a trespasser.

A) I only

Which of the following statements about the medical insurance (PartB) portion of Medicare is(are) true? I. Participation in Part B of Medicare is voluntary. II. It is provided at no cost to anyone who is fully insured under Medicare.

A) I only

All of the following persons are eligible for a benefit under the retirement portion of the Social Security program EXCEPT A) a divorced spouse, age55, who was married to the retired worker for 6 years. B) a retired workers 63 year-old spouse who is no longer caring for children. C) a retired workers 52 year-old spouse who is caring for a 12year-old daughter of the retired worker. D) a retired workers unmarried 20 year-old son who has been severely disabled since an automobile accident while he was in elementary school.

A) a divorced spouse, age55, who was married to the retired worker for 6 years.

Under common law, which of the following persons is most likely to be classified as an invitee? A) a mail carrier B) a social guest C) a door-to-door salesperson D) a solicitor for a charitable organization

A) a mail carrier

EFG Company suffered reduced demand for its products during a recession. EFG managers were considering laying off some workers when the personnel director said, "Lets not lay off these workers. If we do, our unemployment insurance premiums will increase." The state considers employment stability when determining our premium. Considering the firms employment record when determining the rate to charge for unemployment insurance is called A) experience rating. B) class rating. C) schedule rating. D) retrospective rating.

A) experience rating.

Under certain conditions, the wrongful acts of one person can be attributed to another person. This practice is called A) imputed negligence. B) mediation. C) compative negligence. D) strict liability.

A) imputed negligence.

All of the following are examples of intentional torts EXCEPT A) negligence. B) trespass. C) slander. D) assault.

A) negligence.

Heather sued Robert for injuries suffered in an automobile accident. Based upon the facts presented, the jury concluded that Heather was 40 percent at fault in the accident and Robert was 60 percent at fault. Under the common law doctrine of contributory negligence, the jury should award Heather A) nothing. B) 40 percent of her actual damages. C) 60 percent of her actual damages. D) 100 percent of her actual damages.

A) nothing.

Damages awarded for losses that can be determined or measured are A) special damages. B) general damages. C) punitive damages. D) comparative damages.

A) special damages.

All of the following are elements of negligence EXCEPT A) the ability to pay damages. B) the failure to perform a legal duty to use reasonable care. C) damages or injuries to a claimant. D) proximate cause between the negligent act and the injury or harm that occurs.

A) the ability to pay damages.

All of the following statements about the Medicare Prescription Drug Plan are true EXCEPT A) Medicare prescription drug coverage is available to all Medicare beneficiaries. B) Medicare prescription drug coverage is funded exclusively through the Part A pay roll tax. C) Private firms administer the program on a regional basis. D) In addition to the initial deductible, there is a coverage gap where the beneficiary must pay the entire cost of prescription drugs.

B) Medicare prescription drug coverage is funded exclusively through the Part A pay roll tax.

Dale, age65, was dismayed to learn about all of the deductibles, co-pays, limits, and exclusions in the Medicare program. Dale bought a type of health insurance specifically designed to supplement Medicare, and selected his coverage from among 12 standard policies that private insurers offer. What type of health insurance did Dale purchase? A) long-term care insurance B) Medigap insurance C) major medical insurance D) viatical insurance

B) Medigap insurance

Which of the following statements about covered occupations under the Social Security program is true? A) Employees of private firms are exempt from coverage if they are covered by private pension plans. B) Ministers are automatically covered unless they elect out of coverage because of conscience or religious principles. C) Self-employed persons are covered only if their net annual earnings are $5,000 or less. D) Federal civilian employees hired after 1983 are covered for Medicare only.

B) Ministers are automatically covered unless they elect out of coverage because of conscience or religious principles.

All of the following requirements must be met to satisfy the doctrine of res ipsa loquitur EXCEPT A) The injured party has not contributed to the accident in anyway. B) The injured party must prove negligence on the part of the defendant. C) The event is one that normally does not occur in the absence of negligence. D) The defendant has exclusive control over the instrumentality causing the accident.

B) The injured party must prove negligence on the part of the defendant.

Tony is 48 years old. He earned the maximum taxable wage base under Social Security annually between the time when he was 26 and when he was 40. At age 40, he dropped out of the workforce to care for children as his wife had a high-paying job. Which statement is true regarding Tonys insured status under Social Security? A) Tony is fully insured and currently insured. B) Tony is fully insured, but not currently insured. C) Tony is currently insured, but not fully insured. D) Tony is neither fully insured nor is he currently insured.

B) Tony is fully insured, but not currently insured.

All of the following changes would reduce the long-range deficit for the Social Security program EXCEPT A) increase the OASDI taxable wage base. B) delay scheduled increases in the full retirement age. C) make all OASDI benefits fully taxable. D) use general revenues of the federal government to help pay benefits.

B) delay scheduled increases in the full retirement age.

Common situations involving strict liability include all of the following EXCEPT A) blasting operations. B) operating a motor vehicle. C) work-related injuries under workers compensation. D) cropdusting.

B) operating a motor vehicle.

Beth was injured at work and is eligible to receive workers compensation benefits. All of the following benefits are provided under workers compensation EXCEPT A) disability income. B) retirement benefits. C) rehabilitation. D) medicalcare.

B) retirement benefits.

Frank is doing some life insurance planning. A financial advisor said, be sure to consider Social Security when examining sources of funds available for family support if you die. The financial advisor was referring to which Social Security benefit? A) retirement benefits B) survivor benefits C) disability benefits D) health insurance benefits

B) survivor benefits

Nancy was injured when she drove her car through a stop sign and was struck by Philips car. Philip saw Nancy and could have stopped. However, he failed to do so since he had the right-of-way. Nancy can recover damages from Philip under which of the following legal doctrines? A) vicarious liability B) the last clear chance rule C) contributory negligence D) the assumption of risk doctrine

B) the last clear chance rule

What is the effect of the family purpose doctrine? A) to impose liability on children for the care of elderly parents B) to impose liability on the owner of an automobile for the negligence of immediate family members operating the automobile C) to impose liability on a parent for any negligence caused by a child D) to impose strict liability on the owner of a wild animal for any injuries caused by the animal

B) to impose liability on the owner of an automobile for the negligence of immediate family members operating the automobile

All of the following persons are eligible for survivor benefits under Social Security EXCEPT A) dependent parents age 62 or older. B) unmarried children between the ages of 18 and 22 who are attending college. C) a surviving spouse age 60 or older. D) a surviving spouse with eligible children younger than age1 6.

B) unmarried children between the ages of 18 and 22 who are attending college.

All of the following statements about Medicare are true EXCEPT A) While Social Security old-age benefits are available at age 62, Medicare Part A benefits are not available, in most cases, until age 65. B) Medicare covers disabled persons younger than age 65 who have been entitled to Social Security disability benefits for at least 24 months. C) An individual who does begin to receive Social Security old-age benefits until age 67 is not eligible for Medicare benefits until age 67. D) Beneficiaries must pay a monthly premium for Medicare Part B coverage.

C) An individual who does begin to receive Social Security old-age benefits until age 67 is not eligible for Medicare benefits until age 67.

All of the following statements about benefits under workers compensation programs are true EXCEPT A) Disability income benefits are usually paid retroactively to the date of injury if the worker is still disabled after satisfying awaiting period. B) Death benefits and benefits to eligible survivors are payable if a worker is killed on the job. C) Medical benefits are usually subject to substantial deductibles, coinsurance, and numerous exclusions. D) Rehabilitation benefits are available to restore disabled workers to productive employment.

C) Medical benefits are usually subject to substantial deductibles, coinsurance, and numerous exclusions.

Which of the following statements about unemployment insurance benefits is true? A) Benefits are a flat amount regardless of a workers previous wages. B) Because of federal legislation, the maximum benefit is the same in all states. C) Most states pay regular benefits for a maximum duration of 26 weeks. D) Under the extended benefits program, the federal government continues benefit payments for up to 4 years for workers who have exhausted the irregular benefits.

C) Most states pay regular benefits for a maximum duration of 26 weeks.

All of the following statements about the characteristics of social insurance programs are true EXCEPT A) They are designed to provide a floor of income with respect to the risks which are covered. B) The method of determining benefits is prescribed by law. C) Participants are required to satisfy a means test to receive benefits. D) With few exceptions, social insurance programs are compulsory.

C) Participants are required to satisfy a means test to receive benefits.

Marion owns substantial financial assets. She was surprised that she qualified for Social Security retirement benefits when she retired because of her high investment income. What characteristic of social insurance programs is Marion overlooking with respect to her Social Security retirement benefits? A) Social insurance programs are financially self-supporting. B) Social insurance program benefits are loosely related to earnings. C) Social insurance benefits are not means tested. D) Full funding of social insurance programs is unnecessary.

C) Social insurance benefits are not means tested.

All of the following statements about the Medicare prescription drug benefit are true EXCEPT A) Beneficiaries are required to pay a monthly premium for the benefit. B) The plan provides protection against catastrophic prescription drug expenditures. C) The plan requires a $20 deductible for each prescription which is filled. D) The plan has a coverage gap before a beneficiary has coverage for catastrophic costs.

C) The plan requires a $20 deductible for each prescription which is filled.

In addition to most persons over age 65, which of the following persons is(are) eligible for Medicare benefits? I. Persons under age 65 who have been entitled to Social Security disability benefits for at least 24 months. II. Persons under 65 who need long-term kidney dialysis treatment or a kidney transplant.

C) both I and II

Objectives of unemployment insurance include which of the following? I. To help unemployed workers find jobs. II. To encourage employers to stabilize employment.

C) both I and II

Which of the following are legal obligations of a property owner with respect to an invitee? I. The property owner must warn an invitee of any unsafe conditions. II. The property owner must inspect the premises and eliminate any dangerous conditions revealed by the inspection.

C) both I and II

Which of the following statements about the coverage of health care services under Part A of Medicare is(are) true? I. Services in the patients home are covered if the patient requires skilled care and meets certain conditions. II. Hospice care is available for beneficiaries with a terminal illness.

C) both I and II

Which of the following statements about the financing of the Social Security programs is(are) true? I. Although the self-employed pay an OASDI tax rate that is twice the employee rate, they are allowed certain deductions that reduce the effective tax rate. II. The earnings base on which OASDI taxes are paid increases annually based on changes in average wages in the national economy.

C) both I and II

Which of the following statements about the problems and issues of unemployment insurance programs is(are) true? I. Many state programs are inadequately financed. II. Only a small portion of the total unemployed receive benefits at anytime.

C) both I and II

Which of the following statements about torts is(are) true? I. The person who is injured or harmed by a tort is called a plaintiff or claimant. II. The punishment for committing a tort is damages in the form of money.

C) both I and II

Which of the following statements is(are) true with respect to the Social Security earnings test? I. The earnings test does not apply to dividends, interest, and rental income. II. The earnings test does not apply to work earnings for those individuals who have reached the full retirement age under Social Security.

C) both I and II

Current problems and issues with workers compensation include all of the following EXCEPT A) involvement of lawyers in workers compensation claims B) insuring catastrophic loss exposures C) reduced benefits for occupational illness D) rising medical costs

C) reduced benefits for occupational illness

All of the following are options for reducing the long-range OASDI actuarial deficit EXCEPT A) increasing the pay roll tax. B) reducing benefits. C) reducing the taxable wage base. D) using general revenues to fund benefits.

C) reducing the taxable wage base.

All of the following are reasons for social insurance programs EXCEPT A) to solve complex social programs. B) to provide a base of economic security. C) to provide need-tested benefits to low-income individuals. D) to provide coverage for perils which are difficult to insure privately.

C) to provide need-tested benefits to low-income individuals.

Prior to the establishment of workers compensation laws, an employer could use all of the following defenses to block an injured workers claim for benefits EXCEPT A) the contributory negligence doctrine. B) the fellow-servant doctrine. C) the employer liability doctrine. D) the assumption-of-risk doctrine.

C)the employer liability doctrine.

Which of the following statements about the full retirement age under the Social Security program is true? A) The current retirement age for full benefits is age 62. B) Beginning in the year 2022, the retirement age will be gradually increased to age 80. C) Early retirement with reduced benefits is allowed as early as age 55. D) Delayed retirement beyond the age for full benefits increases the amount of the monthly benefit.

D) Delayed retirement beyond the age for full benefits increases the amount of the monthly benefit.

Under Part A of Medicare, how is reimbursement for in patient hospital care determined? A) The amount billed to Medicare by the hospital is the amount Medicare pays. B) Eighty percent of the hospitals regular charge for care is paid. C) The hospitals usual, reasonable, and customary charge is paid. D) Hospital care is classified into diagnosis-related groups (DRGs) and the amount reimbursed depends on the DRG classification of the care delivered.

D) Hospital care is classified into diagnosis-related groups (DRGs) and the amount reimbursed depends on the DRG classification of the care delivered.

Which of the following statements about disability benefits under Social Security is true? A) There is a one-year waiting period before benefits are payable. B) Benefits are payable as long as the disabled worker is unable to perform his or her regular occupation. C) Benefits are payable only if the condition causing the disability is expected to result in death prior to age 65. D) In addition to the disabled worker receiving the benefits, benefits can also be paid to eligible dependents.

D) In addition to the disabled worker receiving the benefits, benefits can also be paid to eligible dependents.

All of the following statements about the financing of unemployment insurance benefits are true EXCEPT A) All contributions from a state are deposited in the states account in a federal trust fund from which benefits are paid. B) The tax rate for a given employer maybe reduced if the employer has a favorable employment record. C) Part of an employers contribution is used for administrative expenses, to fund extended benefits, and to maintain a loan fund that can be draw upon if the states account is depleted. D) Most state programs are financed primarily by payroll taxes paid by employees.

D) Most state programs are financed primarily by payroll taxes paid by employees.

All of the following statements about workers compensation programs are true EXCEPT A) They are based on the principle of liability without fault. B) Disabled workers are paid for their injuries based on a schedule of benefits established by law. C) Options available for complying with the law may include one or more of the following: self-insurance, private insurance, or insurance through a state insurance fund. D) Most states have elective laws where by the employer can choose whether or not to provide workers compensation coverage to employees.

D) Most states have elective laws where by the employer can choose whether or not to provide workers compensation coverage to employees.

All of the following may give rise to imputed negligence EXCEPT A) employer-employee relationships. B) joint business ventures. C) vicarious liability laws. D) attractive nuisance situations.

D) attractive nuisance situations.

Marco, a risk manager in California, is interviewing for a new position in the state of Washington. When Marco asked about methods of providing workers compensation, the answer surprised him. In Washington, employers can self-insure the risk or obtain coverage through a state fund. Private insurers do not market workers compensation insurance in Washington. Washington uses a A) competitive state fund. B) guaranty fund. C) reinsurance facility. D) monopoly state fund.

D) monopoly state fund.

Failure to exercise the degree of care required by law to protect others from harm is called A) premeditated liability. B) vicarious liability. C) punitive damages. D) negligence.

D) negligence.

Which of the following statements about a workers primary insurance amount is(are) true? I. It is the monthly amount paid to a worker who elects early retirement at age 62. II. It is equal to 50 percent of the workers final average pay that was subject to Social Security taxes.

D) neither I nor II

Which of the following statements about credits (quarters of coverage) under the Social Security program is(are) true? I. Up to 10 credits can be earned in a single year. II. A worker receives one credit for each $10,000 of covered wages in a calendar year, regardless of the workers wages.

D) neither I nor II

Which of the following statements concerning Medicare Prescription Drug Plans is(are) true? I. The monthly premium is based on the health status of the beneficiary and the number of prescriptions the beneficiary needs. II. After the beneficiary has paid an initial deductible, Medicare pays the entire cost of all prescription drugs the beneficiary needs.

D) neither I nor II

Charges for all of the following medical expenses are covered under the medical insurance (Part B) portion of Medicare EXCEPT A) physicians services in doctors offices. B) hospital equipment and other durable medical equipment used at home. C) clinical laboratory services. D) prescription drugs outside of the hospital.

D) prescription drugs outside of the hospital.

In order to receive unemployment insurance benefits, an unemployed worker must meet all of the following eligibility requirements EXCEPT A) have qualifying wages and employment. B) be able to work. C) be actively seeking work. D) satisfy a 6-month waiting period.

D) satisfy a 6-month waiting period.

A situation in which a person is held legally liable even though fault or negligence cannot be proven is an example of A) general damages. B) comparative negligence. C) an intentional tort. D) strict liability.

D) strict liability.

Which of the following statements about comparative negligence laws is(are) true? I. Under the pure rule, any negligence by the plaintiff automatically bars recovery for damages. II. Under the 50 percent rule, parties who are equally at fault a reeach allowed to recover damages.

B) II only

Which of the following statements about hospice benefits under the hospital insurance (PartA) portion of Medicare is(are) true? I. Hospice benefits are only payable while the beneficiary is hospitalized. II. Hospice benefits are provided to persons who are terminally ill.

B) II only

Which of the following statements about monetary damages awarded by a court is(are) true? I. The purpose of general damages is to provide benefits for medical expenses or loss of earnings. II. The purpose of punitive damages is to punish the tortfeasor so that others are deterred from committing the same wrongful act.

B) II only

Which of the following statements about the Social Security cost-of-living adjustment is(are) true? I. The amount of the adjustment is limited to a maximum of 2.5 percent annually. II. Increases are based on changes in the consumer price index.

B) II only

Which of the following statements about the immunity of governmental entities is(are) true? I. Governmental entities are more likely to be immune from liability when performing proprietary functions than when performing governmental functions. II. Many courts have eliminated the immunity of government entities.

B) II only

Which of the following statements about the role of physicians with respect to Medicare claims is(are) true? I. Physicians who do not accept an assignment of Medicare claims can charge as much as 200 percent of the Medicare-approved fee. II. Physicians who accept assignment agree to accept the Medicare -approved amount as payment in full.

B) II only

Which of the following statements about the taxation of Social Security retirement benefits is(are) true? I. Social Security retirement benefits are never considered taxable income. II. Up to 85 percent of Social Security retirement benefits maybe considered taxable income, depending on the amount of other income received by the beneficiary.

B) II only

Which of the following statements is(are) true with respect to the Medicare Advantage Plans? I. These plans replace the original Medicare program, Parts A and B, which are no longer available to new retirees. II. These plans provide an opportunity for retirees to receive Medicare coverage through private healthcare plans.

B) II only

Under one type of Medicare Advantage Plan, members of the plan can see any doctor or health services provider that accepts Medicare patients. If members receive care outside the network of member physicians and care facilities, they must pay higher out-of-pocket costs. This type of Medicare Advantage Plan is a A) Medicare HMO. B) Medicare PPO. C) Medicare Special Needs Plan. D) Medicare Private Fee-for-Service Plan.

B) Medicare PPO.