Question 1

A company that has been providing generous defined benefit pension plans to all its retirees for the past 50 years is now facing bankruptcy and is unable to pay the pension amount. Which of the following statements is true in the given scenario?

Accepted Answer

A)   The Pension Benefit Guaranty Corporation will pay the company's retiree benefits from its solvency fund.
B)   The Pension Benefit Guaranty Corporation will reduce the pension amount based on the available amount of money in the pension fund.
C)   The retirees will have to forfeit their pension benefits.
D)   The company can suspend pension payments until the pension fund is fully recovered. A

Question 2

Which of the following is true of the Older Workers Benefit Protection Act (OWBPA)?

Accepted Answer

A)   It has set the maximum retirement age for employees to be eligible for retirement benefits at 60 years.
B)   It was enacted in 1990 as an amendment to the Age Discrimination in Employment Act (ADE
A)  .
C)   It extends dependent coverage up to age 60.
D)   It exclusively covers employees in the government sector. B

Question 3

Which of the following is true of the Patient Protection and Affordable Care Act?

Accepted Answer

A)   It requires firms with 30 or more employees to provide health care coverage.
B)   It encourages insurance companies to set rates based on an individual's health status.
C)   It extends dependent coverage up to age 26.
D)   It eliminates coverage for preventive services. C

Question 4

The Family and Medical Leave Act (FMLA) defines a _____ as an illness or injury that requires inpatient care or continuing treatment by a health care provider for medical problems that exist beyond three days.

Accepted Answer

A)   mental disorder
B)   serious health condition
C)   life-threatening illness
D)   chronic disease

Question 5

How is the provision of benefits rather than wages advantageous for employees?

Accepted Answer

The answer of How is the provision of benefits rather...

Question 6

The _____ ensures the privacy of employee medical records.

Accepted Answer

A)   Health Insurance Portability and Accountability Act (HIPA
A)  
B)   Age Discrimination in Employment Act (ADE
A)  
C)   Employee Retirement Income Security Act (ERIS
A)  
D)   Family and Medical Leave Act (FML
A)

Question 7

Kenneth is a Programmer in the customer service department in Kynol Inc. When his father dies, he applies for a leave. In this scenario, Kenneth is most likely to have applied for a _____.

Accepted Answer

A)   paternity leave
B)   sick leave
C)   bereavement leave
D)   jury leave

Question 8

What are employee-paid group benefits? Why are they becoming popular?

Accepted Answer

The answer of What are employee-paid group benefits? Why are...

Question 9

Samuel works for a company that provides health care benefits to all its insured employees. However, every time Samuel visits a physician, he is required to pay a fixed amount of $20 from his own pocket, whereas the rest of the amount is covered by the medical insurance. The $20 that Samuel has to pay is an example of a(n) _____.

Accepted Answer

A)   insurance premium
B)   end-user cost
C)   copayment
D)   deductible

Question 10

Most benefits, except for paid time off, are taxed as income to employees.

Accepted Answer

A) True 
 B)False

Question 11

Glen, a line manager, is informed that his company will be introducing a stock purchase plan for employees. This implies that _____.

Accepted Answer

A)   Glen will receive monthly dividends from his employer
B)   Glen will be able to sell his share of the company stocks at the market rate
C)   Glen will be able to buy shares in the company at a discount
D)   Glen will be provided financial counseling on the purchase and sale of stocks

Question 12

Employees are more likely to stay with employers who provide child-care and elder-care benefits.

Accepted Answer

A) True 
 B)False

Question 13

Karen, a diabetic, has quit her job as an Internal Auditor with a bank and has joined another company as the Assistant Chief Financial Officer. Which of the following acts will enable Karen to switch her health insurance plan from her former employer to her new employer?

Accepted Answer

A)   Employee Retirement Income Security Act (ERIS
A)  
B)   Family and Medical Leave Act (FML
A)  
C)   Age Discrimination in Employment Act (ADE
A)  
D)   Health Insurance Portability and Accountability Act (HIPA
A)

Question 14

Meredith, the General Manager at Gladfle Inc., is planning to use certain new strategies to control and reduce the health care benefit costs to her company. Which of the following should she include in her list of strategies?

Accepted Answer

A)   Decreasing copayments
B)   Eliminating high-deductible plans
C)   Switching to consumer-driven health plans
D)   Avoiding managed care

Question 15

As per the provisions of the Affordable Care Act, companies in the United States are prohibited from increasing the fixed copay amount, decreasing the percentage, or decreasing the dollar amount that employees share for costs.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following statements is true of part-time employees?

Accepted Answer

A)   Anti-discrimination laws enable part-time employees in the United States to receive the same benefits as those received by full-time employees.
B)   Many employers in the United States do not provide any part-time employee benefits, except some paid time off.
C)   Over 90 percent of the part-time employees in the United States have access to health care benefits.
D)   Less than 5 percent of the part-time employees in the United States have access to retirement benefits.

Question 17

Spousal exclusion provisions limit access to a company's health plan when an employee's spouse works for another company that offers health insurance.

Accepted Answer

A) True 
 B)False

Question 18

Workers cannot be required to make financial contributions for coverage under workers' compensation programs.

Accepted Answer

A) True 
 B)False

Question 19

Both short-term and long-term disability insurance provide continuing income protection for employees who become disabled and are unable to work.

Accepted Answer

A) True 
 B)False

Question 20

The Family and Medical Leave Act of 1993 requires that employers allow eligible employees to take a maximum of _____ during any 12-month period.

Accepted Answer

A)   12 weeks of paid leave
B)   24 weeks of paid leave
C)   12 weeks of unpaid leave
D)   24 weeks of unpaid leave

Exam 12: Managing Employee Benefits

A company that has been providing generous defined benefit pension plans to all its retirees for the past 50 years is now facing bankruptcy and is unable to pay the pension amount. Which of the following statements is true in the given scenario?

Which of the following is true of the Older Workers Benefit Protection Act (OWBPA) ?

Which of the following is true of the Patient Protection and Affordable Care Act?

The Family and Medical Leave Act (FMLA) defines a _____ as an illness or injury that requires inpatient care or continuing treatment by a health care provider for medical problems that exist beyond three days.

How is the provision of benefits rather than wages advantageous for employees?

The _____ ensures the privacy of employee medical records.

Kenneth is a Programmer in the customer service department in Kynol Inc. When his father dies, he applies for a leave. In this scenario, Kenneth is most likely to have applied for a _____.

What are employee-paid group benefits? Why are they becoming popular?

Most benefits, except for paid time off, are taxed as income to employees.

Glen, a line manager, is informed that his company will be introducing a stock purchase plan for employees. This implies that _____.

Employees are more likely to stay with employers who provide child-care and elder-care benefits.

Karen, a diabetic, has quit her job as an Internal Auditor with a bank and has joined another company as the Assistant Chief Financial Officer. Which of the following acts will enable Karen to switch her health insurance plan from her former employer to her new employer?

Meredith, the General Manager at Gladfle Inc., is planning to use certain new strategies to control and reduce the health care benefit costs to her company. Which of the following should she include in her list of strategies?

As per the provisions of the Affordable Care Act, companies in the United States are prohibited from increasing the fixed copay amount, decreasing the percentage, or decreasing the dollar amount that employees share for costs.

Which of the following statements is true of part-time employees?

Spousal exclusion provisions limit access to a company's health plan when an employee's spouse works for another company that offers health insurance.

Workers cannot be required to make financial contributions for coverage under workers' compensation programs.

Both short-term and long-term disability insurance provide continuing income protection for employees who become disabled and are unable to work.

The Family and Medical Leave Act of 1993 requires that employers allow eligible employees to take a maximum of _____ during any 12-month period.