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This is a multiple choice quiz for my Administration Benefits class. Each question contains each of the multiple choice answers to chose from. Anyone familiar with the aspects and topics of benefits and administration shouldn’t have that much problem with this – or theres always the internet! I do need this back fairly quickly!
Top of Form
Question 1
Which of the following is not an accrual criteria?
Answer
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[removed] |
Average benefit test |
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3% rule |
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Fractional rule |
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113 1/3 rule |
1.5 points
Question 2
These indicate yearly probabilities of death based on such factors as age and sex.
Answer
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Experience ratings |
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Formulary ratings |
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Mortality tables |
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Morbidity tables |
1.5 points
Question 3
Which of the following is not a hybrid plan?
Answer
|
Money purchase |
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Cash balance |
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Stock option |
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Target benefit |
1.5 points
Question 4
In short-term disability insurance plans, this term refers to the minimum amount of time an employee must wait after becoming disabled before disability insurance payments begin.
Answer
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Elimination period |
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Exclusion period |
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Preeligibility period |
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Full integration period |
1.5 points
Question 5
This consumer-driven health care option allows employees to contribute pre-tax wages annually to pay for qualified medical expenses, but they will lose the balance not used at year’s end.
Answer
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Flexible spending accounts |
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Health reimbursement arrangements |
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Health savings accounts |
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Flexible savings accounts |
1.5 points
Question 6
Most short-term disability insurance plans pay employees around how much of their regular pre-tax salary?
Answer
| 85 – |
100% |
| 35 – |
50% |
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50 – 67% |
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40 – 59% |
1.5 points
Question 7
ERISA regulates all but which of the following?
Answer
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Disability insurance |
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Health insurance |
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Life insurance |
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Paid time off |
1.5 points
Question 8
Medical care has risen about how much since 1982?
Answer
|
300% |
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1000% |
1.5 points
Question 9
These reduce company-sponsored benefits by subtracting a particular percentage of these disability benefits from workers’ compensation and Social Security disability plans.
Answer
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Elimination provisions |
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Exclusion provisions |
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Limited integration provisions |
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Offset provisions |
1.5 points
Question 10
This law sets minimum standards for the length of hospital stays for mothers and newborns.
Answer
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Family and Medical Leave Act |
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Newborns’ and Mothers’ Health Protection Act |
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Pregnancy Discrimination Act |
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Newborns’ and Mothers’ Discrimination Act |
1.5 points
Question 11
What are the three specific forms of prepaid group practices?
Answer
|
Universal model HMOs, group model HMOs, staff model HMOs |
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Group model HMOs, network model HMOs, universal model HMOs |
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Staff model HMOs, group model HMOs, network model HMOs |
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Network model HMOs universal model HMOs, staff model HMOs |
1.5 points
Question 12
In 2009, the IRC set the maximum annual benefits of defined benefits plans at what amount?
Answer
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$135,000 |
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$195,000 |
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$265,000 |
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$235,000 |
1.5 points
Question 13
Companies establish retirement plans following one of these three design configurations.
Answer
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Defined benefit, defined contribution, hybrid |
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Qualified benefit, qualified contribution, hybrid |
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Qualified benefit, nonqualified benefit, hybrid |
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Funded, unfunded, hybrid |
1.5 points
Question 14
According to ADA guidelines, which of the following is true?
Answer
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Employers can require a longer preeligibility period for employees with disabilities |
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Employers cannot exclude qualified employees with disabilities from participating in its’ disability retirement plans |
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Employers must offer the same benefits to all under its disability retirement plans |
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Employers must include cost-of-living adjustments on its disability benefits |
1.5 points
Question 15
This ERISA Title specifies a variety of protections for participants and beneficiaries.
Answer
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Title I |
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Title II |
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Title IV |
1.5 points
Question 16
What is the 3% rule used to determine?
Answer
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Nondiscrimination in defined benefits plans |
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Nondiscrimination in defined contribution plans |
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Tax benefit qualification for defined benefits plans |
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Tax benefit qualification for defined contribution plans |
1.5 points
Question 17
This amendment contains the equal benefit or equal cost principle and bans termination of an employee’s long-term disability benefits for active employees based on age.
Answer
|
Older Workers Benefit Protection Act |
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Retired Workers Protection Act |
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Age Discrimination in Employment Act |
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Older Workers Retirement Act |
1.5 points
Question 18
This federal law requires group health plans to provide medical and surgical benefits for mastectomies.
Answer
|
Women’s Health and Cancer Rights Act |
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Health Insurance Portability and Accountability Act |
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Women with Disabilities Act |
1.5 points
Question 19
To qualify as a group term life insurance policy, it must insure at least how many full-time employees?
Answer
1.5 points
Question 20
Which of the following laws was NOT mentioned as having a major influence on company-sponsored disability insurance plans?
Answer
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Fair Labor Standards Act |
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Employee Retirement Income Security Act |
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Americans with Disabilities Act |
1.5 points
Question 21
These are the most popular approaches used by employers to offer consumer-driven health care.
Answer
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Flexible savings accounts, health reimbursement arrangements |
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Health spending accounts, health reimbursement arrangements |
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Flexible spending accounts, health reimbursement arrangements |
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Health savings accounts, flexible spending accounts |
1.5 points
Question 22
These types of insurance plans are set up to cover things like dental care, vision care and prescription drugs.
Answer
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Flexible savings plans |
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Flexible services accounts |
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Carve-out plans |
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Health services accounts |
1.5 points
Question 23
Savings incentive match plans for employees (
SIMPLE
s) have the following characteristics
Answer
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The company has at least 100 employees, the employees’ preceding year’s compensation totaled at least $5000, the company has no other employer-sponsored retirement plan |
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The company has fewer than 100 employees, the employees’ preceding year’s compensation totaled less than $5000, the company has no other employer-sponsored retirement plan |
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The company has fewer than 100 employees, the employees’ preceding year’s compensation totaled less than $5000, the company offers other employer-sponsored retirement plans |
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The company has fewer than 100 employees, the employees’ preceding year’s compensation totaled at least $5,000, the company has no other employer-sponsored retirement plan |
1.5 points
Question 24
Which of the following are characteristics of the flat benefit formula used in defined benefits plans?
Answer
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An employee’s years of service are considered, is determined using a flat amount formula or a flat percentage formula, the benefit is based on a percentage of the employee’s final average wage or salary |
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Is determined using a flat amount formula or a flat percentage formula an employee’s years of service are considered, the benefit is based on a percentage of the employee’s final average wage or salary, is based on the employee’s last 3-4 years of service |
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Is based on the employee’s last 3-4 years of service an employee’s years of service are considered, the benefit is based on a percentage of the employee’s final average wage or salary, an employee’s years of service are considered |
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The benefits are based on a percentage of the employee’s final average wage or salary, are based on the employee’s last 3-4 years of service and are determined using a flat amount formula or a flat percentage formula |
1.5 points
Question 25
The 133 1/3% rule refers to what?
Answer
|
The annual accrual rate for defined benefits plans |
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The annual accrual rate for defined contribution plans |
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The annual accrual rate for qualified benefit plans |
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The annual accrual rate for qualified contribution plans |
1.5 points
Question 26
What is coinsurance?
Answer
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When both parents have employer-sponsored insurance coverage for their children |
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Two insurance companies combine to offer a group policy to an employer |
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The amount an employee has to pay out-of-pocket before the insurance kicks in |
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The percentage of covered expenses paid by the insured |
1.5 points
Question 27
FASB 106 does not do which of the following?
Answer
|
Held firm the method for how companies recognize the costs of non pension retirement benefits, including health insurance, on financial balance sheets |
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Reduces the amount of net profit companies list on balance sheets |
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Benefits such as health care coverage establish an exchange between the employer and employee |
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Post-retirement benefits are part of employee’s compensation package |
1.5 points
Question 28
In 2008, what percentage of full-time and part-time employees received employer-sponsored life insurance?
Answer
|
40% |
|
|
70% |
30% |
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70% full-time, 40% part-time |
|
|
75% |
1.5 points
Question 29
Short-term disability insurance usually provides benefits for up to how long?
Answer
|
6 months |
|
9 months |
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3 months |
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12 months |
1.5 points
Question 30
Which of the following does not fall within the scope of the role of a primary care physician?
Answer
|
Making initial diagnosis and evaluation of patient’s condition |
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Identifying applicable treatment protocols and practice guidelines |
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Providing specialist diagnosis |
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Deciding what treatment is warranted |
1.5 points
Question 31
Which legislative act made benefit and contribution limits permanent?
Answer
|
ERISA Title I |
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Economic Growth and Tax Relief Reconciliation Act of 2001 |
|
Pension Protection Act of 2006 |
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Title III |
1.5 points
Question 32
These are the three main types of dental plans.
Answer
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Dental fee-for-service, dental savings accounts, dental maintenance organizations |
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Dental savings accounts, dental maintenance organizations, dental service plans |
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Dental preferred provider organizations, dental maintenance organizations, dental service corporations |
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Dental fee-for-service, dental service corporations, dental maintenance organizations |
1.5 points
Question 33
To qualify as a nondiscriminating defined contribution plan, it must meet which two safe harbors?
Answer
|
Base contribution formula or collateral contribution formula |
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Fixed first-dollar-of-profits formula or graduated first-dollar-of-profits formula |
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Uniform allocation formula or uniform points allocation formula |
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Profitability threshold formula or the backloading formula |
1.5 points
Question 34
The benefits distributed from profit sharing plans are usually allocated using one of these three ways.
Answer
|
Lump sum payments, graduated payments, proportional payments based on their contributions to profits |
|
Equal payments, proportional payments based on salary, lump sum payments, graduated payments |
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Equal payments, proportional payments based on salary, proportional payments based on their contributions to profits |
|
Equal payments based on contributions to profits, equal payments based on salary, lump sum payments |
1.5 points
Question 35
Which one of these is not a defined contribution plan?
Answer
|
Cash balance plan |
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ESOPs |
||
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Profit sharing |
1.5 points
Question 36
This consumer-driven health care option contains contributions made by employers and the balance can be carried-over to the next year.
Answer[removed] Flexible spending accounts[removed] Health reimbursement arrangements[removed] Health savings accounts[removed] Flexible savings accounts1.5 points
Question 37
These two are the basic accrual rules for the nondiscrimination testing for defined contribution plans.
Answer
|
Contributions cannot be reduced based on age, no maximum age limit for discontinuing contributions |
|
Contributions can be reduced based on age if everyone in the plan is affected, no maximum age limit for discontinuing contributions |
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Contributions can be reduced based on age if everyone in the plan is affected, no minimum age limit for discontinuing contributions |
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Contributions can be increased based on age, no maximum age limit for discontinuing contributions |
1.5 points
Question 38
This type of medical plan acts as a backup to basic insurance by covering expenses that exceed maximum benefit limits.
Answer
|
Supplemental major medical plan |
|
Comprehensive major medical plan |
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Network major medical plan |
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Uniform major medical plan |
1.5 points
Question 39
This type of hybrid plan is based on income and years of service, uses individual accounts, passes the IRS’s cross-testing rules and the total benefits are based on the investment performance of the plan’s assets.
Answer
|
Target benefit plan |
|
|
Money purchase plan |
|
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Age-weighted profit sharing plan |
1.5 points
Question 40
Which of the following is a tax benefit associated with 401(k) plans?
Answer
|
Employees pay taxes on their contribution |
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Employees do not pay taxes on their contributions |
|
Investment gains are taxed |
|
Employees cannot deduct their contributions from taxable income |
1.5 points
Question 41
Using the ratio percentage test for tax benefit qualification, what does the percentage of nonhighly compensated employees to highly compensated employees in the plan have to be?
Answer
|
60% |
1.5 points
Question 42
Employer-sponsored disability insurance plans generally supplement legally required benefits established by which law?
Answer
|
Family Medical Leave Act |
|
Social Security Act |
1.5 points
Question 43
US companies offered life insurance to what percentage full time employees in 2008?
Answer
|
78% |
1.5 points
Question 44
Self-inflicted wounds and drug dependency are generally considered as what in most short-term disability insurance plans?
Answer
|
Partial disability provisions |
|
Preexisting condition |
1.5 points
Question 45
Which of the following is not true for medical reimbursement plans?
Answer
|
Reimburses employees totally or partially |
|
Usually associated with self-funded or independent indemnity plans |
|
Deductibles must be met |
|
Coinsurance usually 70% |
1.5 points
Question 46
Which of the following is NOT a common method for funding tax deferred annuities?
Answer
|
Annuity contracts |
|
Custodial agreements |
1.5 points
Question 47
This prescription drug plan is usually associated with indemnity plans, pays benefits after the employee has met the deductible and tends to charge the most for filling the prescriptions.
Answer
|
Drug prescription plan |
|
Mail order prescription drug program |
|
Medical reimbursement plan |
|
Prescription card program |
1.5 points
Question 48
Most long-term disability insurance plans pay how much after a waiting period of how long?
Answer
|
70 – 90%, after 6 – 12 months |
|
70 – 90%, after 3 – 6 months |
|
50 – 70% after 6 – 12 months |
|
50 – 70% after 3 – 6 months |
1.5 points
Question 49
What are the two types of fee-for-service plans?
Answer
|
Health savings accounts, indemnity plans |
|
Health savings accounts, health reimbursement plans |
|
Health reimbursement plans, indemnity plans |
|
Indemnity plans, self-funded plans |
1.5 points
Question 50
Which section of the US income tax code specifies that the cost of employer-provided group term life insurance qualifies as a tax-free benefit to an employee?
Answer
|
Section 69 |
|
Section 77 |
|
Section 79 |
|
Section 97 |
1.5 points
Question 51
This is a mental or physical disability for which medical advice, diagnosis, care or treatment was received, during a designated period preceding the beginning of disability insurance coverage.
Answer
|
Preeligibility condition |
|
Exclusive condition |
|
Eliminating condition |
1.5 points
Question 52
Which of the following is not a criteria for determining tax qualification in IRC section 79?
Answer
|
General rule for tax benefits of group term life insurance |
|
Exceptions to the general rule that impose taxation |
|
Determination of cost of insurance |
|
Employees does not include former employees |
1.5 points
Question 53
Companies can choose from which three classes of health insurance programs?
Answer
|
Fee-for-service, managed care, point-of-service |
|
Indemnity, health savings accounts, managed care |
|
Point-of-service, fee-for-service, indemnity |
|
Self-funded, managed care, fee-for-service |
1.5 points
Question 54
What are the three common forms of managed care plans?
Answer
|
Individual practice organizations, point-of-service plans, health maintenance organizations |
|
Health maintenance organizations, preferred provider organizations, point-of-service plans |
|
Preferred provider organizations, point-of-service plans, individual practice organizations |
|
Preferred provider organizations, health maintenance organizations, individual practice organizations |
1.5 points
Question 55
This type of defined contribution plan, also known as a CODA, permits only private sector or tax-exempt employers’ employees to tax defer part of their compensation to the trust of a qualified plan.
Answer
|
Section 457 plan |
|
Section 403(b) annuities |
|
Saving incentive match plan |
|
Section 401(k) plan |
1.5 points
Question 56
State health instructor laws address all BUT which of the following?
Answer
|
Extending coverage to particular services, treatments or health conditions |
|
Reimbursing recognized health care providers for health care services |
|
Employer’s self-funded plans |
|
Length of time coverage |
1.5 points
Question 57
These types of insurance plans provide protection against health care expenses in the form of cash benefits paid to the insured or directly to the provider after the services are rendered.
Answer
|
Point-of-service plans |
|
Managed care plans |
|
Fee-for-service plans |
1.5 points
Question 58
This type of hybrid plan defines benefits for each employee by reference to the amount of the employee’s hypothetical account balance.
Answer
|
Pension equity plan |
1.5 points
Question 59
Which of the following factors does not determine the accrual rate in defined contribution plans?
Answer
|
Benefits equal balance in the account |
|
Company cannot set maximum age limits for discontinuing contributions |
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Company’s contribution cannot be reduced because of employee age |
|
Benefits exceed the balance in the account |
1.5 points
Question 60
This type of group insurance plan offers health insurance and other benefits to the employees of two or more unaffiliated employers, except for any arrangements established by a collective bargaining agreement.
Answer
|
Voluntary employee beneficiary associations |
|
Multiple employer trusts |
|
Pooled coverage |
|
Multiple employer welfare arrangement |
