Question 1

The 2011 report from the trustees of Social Security indicates that:

Accepted Answer

A)  Social Security will be bankrupt by the year 2024 
B)  with no changes to the program, the Medicare Hospital Insurance trust fund will be exhausted in 2024 
C)  Baby Boomers are specifically responsible for bankrupting the system 
D)  with no changes to the program, all benefits will be fully-funded through the year 2018 
A)  Social Security will be bankrupt by the year 2024 
B)  with no changes to the program, the Medicare Hospital Insurance trust fund will be exhausted in 2024 
C)  Baby Boomers are specifically responsible for bankrupting the system 
D)  with no changes to the program, all benefits will be fully-funded through the year 2018

Question 2

Mr. Smalley is a retiree on the Medicare prescription drug plan. This year his drug expenditures are $15,100. What percentage will Medicare pay of the medications that cost between $6,657.50 and $15,100?

Accepted Answer

A)  0 
B)  75 
C)  95 
D)  None of the above 
A)  0 
B)  75 
C)  95 
D)  None of the above

Question 3

The Social Security normal retirement age for a person born in 1970 is 65.

Accepted Answer

A) True 
 B)False

Question 4

Mr. Smalley is a retiree on the Medicare prescription drug plan. This year his drug expenditures are $5,100. What percentage will Medicare pay of the medications that cost between $2,930 and $5,100?

Accepted Answer

A)  0 
B)  75 
C)  95 
D)  None of the above 
A)  0 
B)  75 
C)  95 
D)  None of the above

Question 5

Explain what the dramatic shift was in political philosophy leading to the Social Security Act of 1935.

Accepted Answer

Before 1935, the prevailing political ph

Question 6

Social security tax applies only until an annual covered maximum wage is reached. What was that wage in 2012?

Accepted Answer

A)  $84,600 
B)  $90,400 
C)  $110,100 
D)  $119,000 
A)  $84,600 
B)  $90,400 
C)  $110,100 
D)  $119,000

Question 7

Only "currently insured" workers are entitled to a Social Security retirement benefit.

Accepted Answer

A) True 
 B)False

Question 8

The Primary Insurance Amount (PIA) in Social Security:

Accepted Answer

A)  determines your hospital benefits 
B)  determines your supplementary medical benefits 
C)  is based on an average indexed monthly earnings calculation 
D)  determines your eligibility for benefits 
A)  determines your hospital benefits 
B)  determines your supplementary medical benefits 
C)  is based on an average indexed monthly earnings calculation 
D)  determines your eligibility for benefits

Question 9

There will soon be a drastic decline in the number of persons receiving Social Security disability benefits.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is false concerning the operation of the Social Security system?

Accepted Answer

A)  The program is operated on a pay-as-you-go basis. 
B)  Employees and employers share the burden of funding the system. 
C)  Self-employed individuals pay approximately 15.3 percent on their own payroll. 
D)  There are no investment earnings since the program is operated on a pay-as-you-go basis. 
A)  The program is operated on a pay-as-you-go basis. 
B)  Employees and employers share the burden of funding the system. 
C)  Self-employed individuals pay approximately 15.3 percent on their own payroll. 
D)  There are no investment earnings since the program is operated on a pay-as-you-go basis.

Question 11

The private insurance system and the Social Security system are both "fully-funded."

Accepted Answer

A) True 
 B)False

Question 12

After 40 quarters in covered employment a person achieves "fully insured" status, and may receive Social Security benefits even if he or she never works again.

Accepted Answer

A) True 
 B)False

Question 13

Self-employed people must participate in the Social Security program.

Accepted Answer

A) True 
 B)False

Question 14

Each of the following is a Social Security benefit except:

Accepted Answer

A)  retirement 
B)  unemployment 
C)  survivor 
D)  disability 
A)  retirement 
B)  unemployment 
C)  survivor 
D)  disability

Question 15

Which of the following is not a characteristic of a public assistance program benefits?

Accepted Answer

A)  Based on demonstrated need 
B)  Subject to change 
C)  Fully funded 
D)  Funded by general taxes 
A)  Based on demonstrated need 
B)  Subject to change 
C)  Fully funded 
D)  Funded by general taxes

Question 16

The "earnings test" ________.

Accepted Answer

A)  reduces Social Security survivor benefits if wage income exceeds an annually indexed amount 
B)  reduces Medicare benefits if Social Security benefits exceed an annually indexed amount 
C)  requires retired people to show a financial need before benefits are paid 
D)  reduces Social Security benefits if earned wages exceed an annually-indexed amount 
A)  reduces Social Security survivor benefits if wage income exceeds an annually indexed amount 
B)  reduces Medicare benefits if Social Security benefits exceed an annually indexed amount 
C)  requires retired people to show a financial need before benefits are paid 
D)  reduces Social Security benefits if earned wages exceed an annually-indexed amount

Question 17

Social Security is financed by a tax on:

Accepted Answer

A)  employees and employers 
B)  only on employees 
C)  only on employers 
D)  all residents of the United States 
A)  employees and employers 
B)  only on employees 
C)  only on employers 
D)  all residents of the United States

Question 18

Many HMOs have not enjoyed providing managed care for Medicare because:

Accepted Answer

A)  the reimbursement schedule is inadequate or unattractive 
B)  they object to being forced to participate in the program 
C)  older patients are typically unprofitable for all insurers and health care providers 
D)  both A and B 
A)  the reimbursement schedule is inadequate or unattractive 
B)  they object to being forced to participate in the program 
C)  older patients are typically unprofitable for all insurers and health care providers 
D)  both A and B

Question 19

There is no provision to coordinate benefits received under Social Security and Workers' Compensation.

Accepted Answer

A) True 
 B)False

Question 20

Explain what is meant by a "blackout period" as it applies to Social Security benefits.

Accepted Answer

The blackout period is a length of time

Exam 20: Social Security

The 2011 report from the trustees of Social Security indicates that:

Mr. Smalley is a retiree on the Medicare prescription drug plan. This year his drug expenditures are $15,100. What percentage will Medicare pay of the medications that cost between $6,657.50 and $15,100?

The Social Security normal retirement age for a person born in 1970 is 65.

Mr. Smalley is a retiree on the Medicare prescription drug plan. This year his drug expenditures are $5,100. What percentage will Medicare pay of the medications that cost between $2,930 and $5,100?

Explain what the dramatic shift was in political philosophy leading to the Social Security Act of 1935.

Social security tax applies only until an annual covered maximum wage is reached. What was that wage in 2012?

Only "currently insured" workers are entitled to a Social Security retirement benefit.

The Primary Insurance Amount (PIA) in Social Security:

There will soon be a drastic decline in the number of persons receiving Social Security disability benefits.

Which of the following is false concerning the operation of the Social Security system?

The private insurance system and the Social Security system are both "fully-funded."

After 40 quarters in covered employment a person achieves "fully insured" status, and may receive Social Security benefits even if he or she never works again.

Self-employed people must participate in the Social Security program.

Each of the following is a Social Security benefit except:

Which of the following is not a characteristic of a public assistance program benefits?

The "earnings test" ________.

Social Security is financed by a tax on:

Many HMOs have not enjoyed providing managed care for Medicare because:

There is no provision to coordinate benefits received under Social Security and Workers' Compensation.

Explain what is meant by a "blackout period" as it applies to Social Security benefits.

Introduction to Enterprise Risk Management and Insurance

Risk Identification

Risk Assessment and Pooling

Risk-Handling Techniques: Loss Control, Risk Transfer, and Loss Financing

Risk-Handling Techniques: Diversification and Hedging

Fundamentals of Insurance

Insurable Perils and Insuring Organizations

Insurance Functions

Insurance Markets: Economics and Issues

Insurance Regulation

Insurance Contracts

The Personal Auto Policy

Homeowners Insurance

Professional Financial Planning

Life Insurance Policies

Standard Life Insurance Contract Provisions and Options

Annuities

Health Insurance and Disability Income

Employee Benefits

Unemployment and Workers Compensation Insurance

Commercial Property Insurance

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