Newman Benefit Options Complete Test Bank Ch.13

1.

Data from WellPoint Inc shows that _____ percent of its 29 million customers account for over 60 percent of its medical costs. 
 

2.

Which of the following is NOT a benefit that is required by statutory law? 
 

3.

Jennifer is hurt at work while driving a forklift. Her employer claims that she was injured as a result of her careless driving, and therefore she is not eligible for workers' compensation. What will be the outcome of the employer's challenge to her worker's compensation claim? 
 

4.

Experts attribute the decline in dollar cost of workers' compensation after 2005 relates to: 
 

5.

_____ relieve an employer's liability when a pre-employment injury combines with a work-related injury to produce a disability greater than that caused by the latter alone. 
 

6.

Which of the following types of workers are generally NOT covered by workers' compensation? 
 

7.

The rising costs of Social Security have been covered by: 
 

8.

Which of the following is a benefit under Social Security? 
 

9.

Which of the following benefits is a federally administered program? 
 

10.

For an employee to gain lifetime coverage under Social Security, they must have worked for _____ quarters during which they were covered by the Act. 
 

11.

In the majority of the states, unemployment insurance is financed exclusively by: 
 

12.

Steve has a small company with 12 employees. One of his employees, Larry, has been laid off because his work has been outsourced. Larry had health coverage through Steve's company and wants to continue that coverage. According to COBRA, how long can Larry continue his coverage through Steve's company after being laid off? 
 

13.

_____ is designed to lessen an employer's ability to deny coverage to an employee for a preexisting condition. 
 

14.

Michael was laid off by his company owing to budget cuts. Before being laid off, he earned $1,000 per week. If he has been receiving unemployment insurance benefits for 26 weeks, which of the following statements is true in this scenario? 
 

15.

Today, _____ percent of the workers participate in the pension plan coverage provided by their employers. 
 

16.

The majority of defined benefit plans calculate average earnings over the last _____ years of service for a prospective retiree. 
 

17.

In a _____ plan, an employer agrees to provide a specific level of retirement pension, which is expressed as either a fixed dollar or a percentage-of-earnings amount that may vary (increase) with years of seniority in the company. 
 

18.

Which of the following is a feature of defined contribution plans? 
 

19.

Which of the following is a hybrid of defined benefit and defined contribution plans? 
 

20.

Jacob, an 18-year-old, has been working at HoldVille Corp. for over a year. If HoldVille offers full vesting after one year, which of the following statements is true? 
 

21.

Maxford Corp. offers full vesting after two years. However, it does not offer portability of pension to its employees. Which of the following statements is true in this scenario? 
 

22.

An employer experiencing high turnover and seeking to reduce pension cost is likely to prefer: 
 

23.

What is the first question that should be asked when determining the amount of retirement income an employer should provide? 
 

24.

An employee who changes jobs four or more times during his or her career will likely receive a pension approximately _____ as that of an employee whose working career is spent with one employer, assuming that both employees have the same starting salary and receive annual increases equal to inflation rate. 
 

25.

Roughly _____ of all employees have access to paid life insurance. 
 

26.

A health maintenance organization (HMO) pulls together a group of providers willing to provide services at an agreed upon rate in exchange for employers: 
 

27.

A _____ plan is a hybrid health plan combining the benefits of HMO and _____. 
 

28.

Some level of dental coverage is provided by about _____ percent of all employers with above 500 employees. 
 

29.

Almost _____ percent of the companies offering child care assistance to employees also offer elder care assistance. 
 

30.

Contingent workers receive _____ benefits than regular workers; contingent workers' benefits cost _____ for employers than it does for regular workers. 
 

31.

A McKinsey survey of CEOs found nearly 90 percent believe benefits are very important for attracting and retaining employees. 
 
True    False

32.

Worker's compensation costs have been declining since 2005 due in part to employer safety programs. 
 
True    False

33.

Workers' compensation is covered by federal laws. 
 
True    False

34.

The Social Security Act has been designed and amended to provide a foundation of basic financial security for American workers and their families. 
 
True    False

35.

A major problem with Social Security is a rising number of retirees without a corresponding increase in the number of contributors. 
 
True    False

36.

Medicare is not part of Social Security. 
 
True    False

37.

Jim was a full-time student for four years, but he could not find a job after graduating. Jim is eligible to collect unemployment insurance. 
 
True    False

38.

Employers who have frequent layoffs pay higher tax rates than those with few layoffs. 
 
True    False

39.

An eligible unemployed person may now collect unemployment insurance benefits for 36 weeks in most states. 
 
True    False

40.

All employers with less than 20 employees must comply with the Consolidated Omnibus Budget Reconciliation Act. 
 
True    False

41.

Most employers prefer defined contribution pension plans to defined benefit plans. 
 
True    False

42.

Employees prefer defined contribution (DC) plans over defined benefit plans because DC plans tend to vest faster. 
 
True    False

43.

A 401(k) is an example of a defined benefit plan. 
 
True    False

44.

A qualified deferred compensation plan offers tax advantages to employers. 
 
True    False

45.

Employees are the sole contributors to their cash balance plans. 
 
True    False

46.

An individual retirement account is a tax-favored retirement savings plan that individuals can establish themselves. 
 
True    False

47.

The Employee Retirement Income Security Act states that employers must offer a retirement plan to their employees if they work for at least 1,250 hours per year. 
 
True    False

48.

Vesting refers to the length of time an employee must work for an employer before he or she is entitled to employer payments made into a pension plan. 
 
True    False

49.

Under the Economic Growth and Tax Reconciliation Act of 2001, employers have three hundred vesting schedule options. 
 
True    False

50.

The Pension Benefit Guarantee Corporation guarantees payment of vested benefits to employees formerly covered by terminated pension plans. 
 
True    False

51.

What is the central challenge of Social Security payments? How are they tackled? 
 

52.

What are the eligibility requirements for unemployment insurance? 
 

53.

What is the purpose of the HIPAA? 
 

54.

What is a cash balance plan? 
 

55.

Explain vesting and portability.