Chapter 12/16
Advantages of cafeteria plans include all EXCEPT A) simplicity of benefit administration B) employees can select benefits that best math their needs C) reduced taxes for employees D) greater employer control over increasing benefit costs
A)
All of the following statements about the eligibility requirements for group insurance are true EXCEPT A) most plans cover both full-time and part-time employees B) an employee must be actively at work on the day the employee's group life insurance becomes effective C) an employee can sign up for insurance during an eligibility period without furnishing evidence of insurability D) one purpose of a probationary period is to lower admin costs by eliminating coverage of transient workers
A)
Which of the following about cafeteria plans is true? I. unspent flexible spending account balances are refunded to the employee, tax-free, at year end II. cafeteria plans enable employees to select benefits that meet their specific needs
B) II only
Nancy's employer provides an interesting employee benefit plan. Each employee is given 250 employee credits to spend. A wide array of benefits are available, and the employee uses benefit credits to select the benefits that he or she wants. This type of employee benefit plans is called A) defined benefit plan B) cafeteria plan C) employee selection plan D) contributory plan
B) cafeteria plan
High deductible group health insurance plans have all of the following characteristics EXCEPT: A) health savings accounts or health reimbursement accounts B) high dollar deductibles C) low coverage limits D) major medical insurance
C)
Which of the following statements about group term life insurance is true? A) it usually is written in the form of 5 year level term insurance B) employee who leaves the group can usually convert the coverage to an individual term life insurance policy C) many employers provide a reduced amount of coverage on retired employees D) represents only about 5 percent of group life insurance in force
C)
Which is true concerning high deductible health plans? I. an employee can withdraw money tax-free from a health savings account or health reimbursement account to pay covered medical costs II. there is a cap of an employee's out of pocket expenses under the plan
C) both
All of the following statements about the characteristics of group insurance are true EXCEPT: A) many people are covered under a single contract B) the cost of group insurance may be lower than the cost of individual insurance C) the actual experience of a large group is a factor in determining the premium that is charge D) the individual evidence of insurability is usually required
D)
Marv is covered by a group health insurance plan at work. His employer funds the entire cost of the group health insurance. Because of this characteristic, the group health insurance plan can be described as: A) defined benefit B) contributory C) defined contribution D) noncontributory
D)
Which of the following statements about group insurance underwriting principles is true? A) employees should be required to remit premiums directly to the insurance company B) the average age of the group should ideally increase over time C) a group should be formed for the specific purpose of obtaining insurance D) the employer should ideally share in the cost of a group insurance plan
D)
Which of the following statements about group insurance underwriting principles is true? I. if a plan is contributory, 100 percent of the eligible employees must be covered II. employees should be allowed to determine their own level of benefits
D) Neither
