Question 1

As of this year, Brad, age 50, has 40 credits under the Social Security program. These credits were all earned in the last 10 years. What is Brad's insured status under the program?

Accepted Answer

A)  He is currently and fully insured. 
B)  He is currently insured, but not fully insured. 
C)  He is fully insured, but not currently insured. 
D)  He is neither currently insured nor fully insured.

Question 2

One insured status under Social Security requires you to have earned at least six credits during the last 13 calendar quarters ending with the quarter of death, disability, or entitlement to retirement benefits. This insured status is

Accepted Answer

A)  disability insured. 
B)  temporarily insured. 
C)  fully insured. 
D)  currently insured.

Question 3

One type of Medicare Advantage Plans provides focused care for a specific group of people, such as diabetics and nursing home residents. This type of Medicare Advantage Plan is a

Accepted Answer

A)  Point of Service (POS) plan. 
B)  Private Fee-for-Service plan. 
C)  Health Maintenance Organization (HMO) plan. 
D)  Special Needs plan.

Question 4

All of the following persons are eligible for a benefit under the retirement portion of the Social Security program EXCEPT

Accepted Answer

A)  a divorced spouse, age 55, who was married to the retired worker for 6 years. 
B)  a retired worker's 63 year-old spouse who is no longer caring for children. 
C)  a retired worker's 52 year-old spouse who is caring for a 12 year-old daughter of the retired worker. 
D)  a retired worker's unmarried 20 year-old son who has been severely disabled because of an automobile accident while he was in elementary school.

Question 5

Which of the following statements about workers compensation programs is true?

Accepted Answer

A)  Injured workers must prove the employer was responsible for their injuries to collect benefits. 
B)  Workers compensation disability income benefits (amount and duration) are uniform from state to state. 
C)  Options available for complying with the law may include one or more of the following: self-insurance, private insurance, or insurance through a state fund. 
D)  Most states have elective laws whereby the employer can choose whether or not to provide workers compensation coverage to employees.

Question 6

Which of the following statements regarding the Emergency Unemployment Compensation (EUC) program is true?

Accepted Answer

A)  EUC benefits are limited to individuals who have exhausted regular state benefits and have annual incomes below the federal poverty level. 
B)  EUC benefits are funded entirely by the federal government. 
C)  EUC benefits are limited to employees who have lost their job because of a labor dispute. 
D)  EUC benefits are available on a case-by-case based and awarded at the discretion of the Secretary of Labor.

Question 7

Which of the following statements about unemployment insurance benefits is true?

Accepted Answer

A)  Benefits are a flat amount regardless of a worker's previous wages. 
B)  Because of federal legislation, the maximum benefit is the same in all states. 
C)  Most states pay regular benefits for a maximum duration of 26 weeks. 
D)  Under the extended benefits program, the federal government continues benefit payments for up to 3 years for workers who have exhausted their regular benefits.

Question 8

Dale, age 65, was dismayed to learn about all of the deductibles, co-pays, limits, and exclusions in the Medicare program. Dale bought a type of health insurance specifically designed to supplement Medicare, and selected his coverage from among 10 standard policies that private insurers offer. What type of health insurance did Dale purchase?

Accepted Answer

A)  long-term care insurance 
B)  Medigap insurance 
C)  major medical insurance 
D)  viatical insurance

Question 9

Frank is doing some life insurance planning. A financial advisor said, "be sure to consider Social Security when examining sources of funds available for family support if you die." The financial advisor was referring to which Social Security benefit?

Accepted Answer

A)  retirement benefits 
B)  survivor benefits 
C)  disability benefits 
D)  health insurance benefits

Question 10

Which of the following statements about taxation of Social Security retirement benefits under federal law is (are) true?
I.Social Security retirement benefits are never considered taxable income.
II.Up to 85 percent of Social Security retirement benefits may be considered taxable income, depending on the amount of other income received by the beneficiary.

Accepted Answer

A)  I only 
B)  II only 
C)  both I and II 
D)  neither I nor II

Question 11

Which of the following statements about Medigap policies is (are) true?
I.Insurers are required to have an open enrollment period of 6 months from the date an applicant first enrolls in Medicare Part B and is age 65 or older.
II.Most policies are of limited value because they largely duplicate benefits already provided by Medicare.

Accepted Answer

A)  I only 
B)  II only 
C)  both I and II 
D)  neither I nor II

Question 12

Marco, a risk manager in California, is interviewing for a new position in the state of Washington. When Marco asked about methods of providing workers compensation, the answer surprised him. In Washington, employers can self-insure the risk or obtain coverage through a state fund. Private insurers do not market workers compensation insurance in Washington. Washington uses a

Accepted Answer

A)  competitive state fund. 
B)  guaranty fund. 
C)  reinsurance facility. 
D)  monopoly state fund.

Question 13

Which of the following would help to reduce the long-range OASDI actuarial deficit?

Accepted Answer

A)  increasing the payroll tax rate 
B)  increasing benefits 
C)  reducing the taxable wage base 
D)  increasing the cost of living adjustment

Question 14

Which of the following statements about Social Security disability benefits is true?

Accepted Answer

A)  Benefits replace ninety percent of a disabled person's work earnings. 
B)  A waiting period is not required for Social Security disability benefits. 
C)  Social Security disability benefits are limited to a maximum duration of 60 months. 
D)  A strict definition of disability is used in the Social Security program.

Question 15

Which of the following statements about the Social Security cost-of-living adjustment is (are) true?
I.The amount of the adjustment is limited to a maximum of 2.5 percent annually.
II.Increases are based on changes in the consumer price index.

Accepted Answer

A)  I only 
B)  II only 
C)  both I and II 
D)  neither I nor II

Question 16

Which of the following statements about the characteristics of social insurance programs is true?

Accepted Answer

A)  Benefits are loosely related to a worker's earnings. 
B)  Benefits are paid primarily on the basis of individual equity. 
C)  Participation in social insurance programs is voluntary. 
D)  Social insurance programs must be fully funded at all times to pay required benefits.

Question 17

All of the following statements about the Medicare Prescription Drug Plan are true EXCEPT

Accepted Answer

A)  Medicare prescription drug coverage is available to all Medicare beneficiaries. 
B)  Medicare prescription drug coverage is funded exclusively through the Part A payroll tax. 
C)  The Medicare prescription drug program provides financial help for beneficiaries with limited income and financial resources. 
D)  In addition to the initial deductible, there is a coverage gap where the beneficiary must pay the entire cost of prescription drugs.

Question 18

Which of the following statements concerning Medicare Prescription Drug Plans is (are) true?
I.The monthly premium is based on the health status of the beneficiary and the number of prescriptions the beneficiary needs.
II.After the beneficiary has paid an initial deductible, Medicare pays the entire cost of all prescription drugs the beneficiary needs.

Accepted Answer

A)  I only 
B)  II only 
C)  both I and II 
D)  neither I nor II

Question 19

Which of the following statements about the financing of the Social Security program is (are) true?
I.Although the self-employed pay an OASDI tax rate that is twice the employee rate, they are allowed certain deductions that reduce the effective tax rate.
II.The earnings base on which OASDI taxes are paid increases annually based on changes in average wages in the national economy.

Accepted Answer

A)  I only 
B)  II only 
C)  both I and II 
D)  neither I nor II

Question 20

Which of the following statements is (are) true with respect to the Social Security earnings test?
I.The earnings test does not apply to dividends, interest, and rental income.
II.The earnings test does not apply to work earnings for those individuals who have reached the full retirement age under Social Security.

Accepted Answer

A)  I only 
B)  II only 
C)  both I and II 
D)  neither I nor II

Exam 18: Social Insurance

As of this year, Brad, age 50, has 40 credits under the Social Security program. These credits were all earned in the last 10 years. What is Brad's insured status under the program?

One insured status under Social Security requires you to have earned at least six credits during the last 13 calendar quarters ending with the quarter of death, disability, or entitlement to retirement benefits. This insured status is

One type of Medicare Advantage Plans provides focused care for a specific group of people, such as diabetics and nursing home residents. This type of Medicare Advantage Plan is a

All of the following persons are eligible for a benefit under the retirement portion of the Social Security program EXCEPT

Which of the following statements about workers compensation programs is true?

Which of the following statements regarding the Emergency Unemployment Compensation (EUC) program is true?

Which of the following statements about unemployment insurance benefits is true?

Frank is doing some life insurance planning. A financial advisor said, "be sure to consider Social Security when examining sources of funds available for family support if you die." The financial advisor was referring to which Social Security benefit?

Which of the following would help to reduce the long-range OASDI actuarial deficit?

Which of the following statements about Social Security disability benefits is true?

Which of the following statements about the Social Security cost-of-living adjustment is (are) true? I.The amount of the adjustment is limited to a maximum of 2.5 percent annually. II.Increases are based on changes in the consumer price index.

Which of the following statements about the characteristics of social insurance programs is true?

All of the following statements about the Medicare Prescription Drug Plan are true EXCEPT