Social Insurance

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

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.

I only

Which of the following statements about the medical insurance (Part B) 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.

I only

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

I only correct

Which of the following statements about hospice benefits under the hospital insurance (Part A) 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.

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 may be considered taxable income, depending on the amount of other income received by the beneficiary.

II only

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

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

Dale, age 65, 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? viatical insurance Medigap insurance major medical insurance long-term care insurance

Medigap insurance

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

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

All of the following statements about the characteristics of social insurance programs are true EXCEPT to provide coverage for perils which are difficult to insure privately. to solve complex social programs. to provide need-tested benefits to low-income individuals. to provide a base of economic security.

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

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 Tony's insured status under Social Security? Tony is fully insured, but not currently insured. Tony is currently insured, but not fully insured. Tony is fully insured and currently insured. Tony is neither fully insured nor is he currently insured.

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 increase the OASDI taxable wage base. use general revenues of the federal government to help pay benefits. delay scheduled increases in the full retirement age. make all OASDI benefits fully taxable.

delay scheduled increases in the full retirement age.

EFG Company suffered reduced demand for its products during a recession. EFG managers were considering laying off some workers when the personnel director said, "Let's 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 firm's employment record when determining the rate to charge for unemployment insurance is called retrospective rating. experience rating. schedule rating. class rating.

experience rating. correct

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 competitive state fund. guaranty fund. monopoly state fund. reinsurance facility.

monopoly state fund. correct

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

the employer liability doctrine.

All of the following are reasons for social insurance programs EXCEPT They are designed to provide a floor of income with respect to the risks which are covered. The method of determining benefits is prescribed by law. With few exceptions, social insurance programs are compulsory. Participants are required to satisfy a means test to receive benefits.

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