Quiz 10: Employer-sponsored Retirement Plans And Health Insurance Programs

Strategic Compensation

Business
43
Questions
0
True/False
30
Choices
13
Essay
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Questions

Q1
Free

Companies establish retirement plans following which of these three design configurations?

Multiple Choice
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A) defined benefit, defined contribution, hybrid
B) qualified benefit, qualified contribution, hybrid
C) qualified benefit, nonqualified benefit, hybrid
D) funded, unfunded, hybrid
Answer:
A) defined benefit, defined contribution, hybrid
Q2
Free

A new employee comes into your office and asks you how many hours a year he has to work to qualify as a year towards his vesting requirements. What would you tell him?

Multiple Choice
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A) 1,000
B) 1,400
C) 800
D) 1,200
Answer:
A) 1,000
Q3
Free

What specifies the rate at which participants accumulate benefits?

Multiple Choice
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A) accrual rules
B) combination procedures
C) Sarbanes-Oxley
D) build-up rules
Answer:
A) accrual rules
Q4

These represent a series of payments for the life of the participant and beneficiary.

Multiple Choice
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A) collateral payments
B) periodic payments
C) lump sum distributions
D) annuities
Answer:

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Q5

What type of retirement plan is a 401(k)?

Multiple Choice
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A) defined contribution
B) defined benefit
C) qualified benefit
D) nonqualified benefit
Answer:

A) You need to subscribe to get the answer.

Q6

What type of pension plan commonly includes profit-sharing plans, stock bonus plans, and employee stock ownership plans?

Multiple Choice
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A) defined benefit
B) defined contribution
C) deferred contribution
D) deferred benefit
Answer:

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Q7

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.

Multiple Choice
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A) 401(k) plan
B) profit sharing plan
C) gain sharing plan
D) incentive plan
Answer:

A) You need to subscribe to get the answer.

Q8

Which of the following is associated with 401(k) plans?

Multiple Choice
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A) Employees pay taxes on their contribution.
B) Employees do not pay taxes on their contributions.
C) Investment gains are taxed.
D) Employees cannot deduct their contributions from taxable income.
Answer:

A) You need to subscribe to get the answer.

Q9

A company uses graduated first-dollar-of-profits formula for their profit-sharing plans. They choose to share 4% of the first $10 million of after-tax profits and 7% of the after-tax profits in excess of that level. Last year if this company's after-tax profit were $15 million, how much of this profit would be distributed to the employees?

Multiple Choice
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A) $1,200,000
B) $1,000,000
C) $750,000
D) $600,000
Answer:

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Q10

Your company asked you to come up with a contribution plan that invests the contributions in company securities and distributes the payouts in stock instead of cash. Which plan would you suggest they use?

Multiple Choice
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A) employee stock option plan (ESOP)
B) 401(k)s
C) profit sharing plan
D) point-of-service plan (POS)
Answer:

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Q11

Which of the following represents the most approximate percentage for private sector employees who have access to at least one employer-sponsored health insurance program in 2010?

Multiple Choice
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A) 20%
B) 50%
C) 70%
D) 90%
Answer:

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Q12

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.

Multiple Choice
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A) point-of-service plans
B) managed care plans
C) fee-for-service plans
D) health savings accounts
Answer:

A) You need to subscribe to get the answer.

Q13

Which of the following is NOT a benefit covered by fee-for-service plans?

Multiple Choice
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A) hospitalization benefits
B) dentist visits
C) physician visits
D) surgical benefits
Answer:

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Q14

What are the two types of fee-for-service plans?

Multiple Choice
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A) health savings accounts, indemnity plans
B) health savings accounts, health reimbursement plans
C) health reimbursement plans, indemnity plans
D) indemnity plans, self-funded plans
Answer:

A) You need to subscribe to get the answer.

Q15

This term refers to the percentage of the health bill the insured employee is required to pay.

Multiple Choice
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A) coinsurance
B) co-admission
C) co-premiums
D) co-payment
Answer:

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Q16

What is coinsurance?

Multiple Choice
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A) when both parents have employer-sponsored insurance coverage for their children
B) two insurance companies combine to offer a group policy to an employer
C) the amount an employee has to pay out-of-pocket before the insurance kicks in
D) the percentage of covered expenses paid by the insured
Answer:

A) You need to subscribe to get the answer.

Q17

This is the condition for which medical advice, diagnosis, care, or treatment was received or recommended during a designated period prior to coverage.

Multiple Choice
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A) preadmission certification
B) preexisting condition
C) second opinions
D) exclusion criteria
Answer:

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Q18

What is another name for health maintenance organizations (HMOs)?

Multiple Choice
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A) outpatient medical services
B) prepaid medical services
C) inpatient medical services
D) on-call medical services
Answer:

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Q19

Common HMO copayment amounts for each doctor's visit vary between?

Multiple Choice
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A) $15-$50
B) $0-$3
C) $50-$75
D) $100-$150
Answer:

A) You need to subscribe to get the answer.

Q20

According the provisions in her health insurance plan with Get Well Insurance, Ursula's coinsurance payment would be $50 if she goes to Dr. Kitt, but will only be $25, if she goes to Dr. Matthew. She probably belongs to what type of insurance plan?

Multiple Choice
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A) point-of-service plan (POS)
B) preferred provider organization (PPO)
C) health maintenance organization (HMO)
D) fee-for-service plan
Answer:

A) You need to subscribe to get the answer.

Q21

In which plan do employees possess the option to receive care from health care providers outside the designated network of physicians, paying more for the choice?

Multiple Choice
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A) fee-for-service plans
B) preferred provider organizations
C) HMOs
D) point-of-service plans
Answer:

A) You need to subscribe to get the answer.

Q22

These types of insurance plans are set up to cover things like dental care, vision care, and prescription drugs.

Multiple Choice
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A) flexible savings plans
B) flexible services accounts
C) carve-out plans
D) health services accounts
Answer:

A) You need to subscribe to get the answer.

Q23

Marty's employer has a prescription drug plan that will only make him pay 20% of cost of his prescription, if he goes only to certain pharmacies. What type of prescription drug plan does he have?

Multiple Choice
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A) prescription reimbursement plan
B) medical reimbursement plan
C) mail order prescription drug plan
D) prescription card program
Answer:

A) You need to subscribe to get the answer.

Q24

Mia has Parkinson's disease, but is on an insurance plan that enables her to have the drugs shipped to her house. She is probably on which type of prescription drug plan?

Multiple Choice
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A) prescription card program
B) formulary
C) mail order
D) medical reimbursement
Answer:

A) You need to subscribe to get the answer.

Q25

What percentage of Americans experience some form of mental illness at least once during their lifetime?

Multiple Choice
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A) 50%
B) 45%
C) 20%
D) 10%
Answer:

A) You need to subscribe to get the answer.

Q26

Jose invested $6,000 in pre-tax income into this healthcare plan, but lost the $780 left in it at the end of the year, because he didn't use it. What type of plan was it?

Multiple Choice
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A) health savings account
B) flexible spending account
C) health reimbursement arrangement
D) fee-for service plan
Answer:

A) You need to subscribe to get the answer.

Q27

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.

Multiple Choice
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A) flexible spending accounts
B) health reimbursement arrangements
C) health savings accounts
D) flexible savings accounts
Answer:

A) You need to subscribe to get the answer.

Q28

This type of consumer driven health care program allows employees to carry-over the unused funds still in their account.

Multiple Choice
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A) health reimbursement account
B) health savings account
C) flexible spending account
D) flexible savings account
Answer:

A) You need to subscribe to get the answer.

Q29

Starting January 1, 2004, eligible individuals are allowed to establish HSAs under which law?

Multiple Choice
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A) Health Maintenance Organization Act
B) Mental Health Parity Act
C) Medicare Prescription Drug, Improvement and Modernization Act
D) HIPAA
Answer:

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Q30

Which one of the following is probably the main reason that health reimbursement accounts (HRAs) are particularly appealing to employees with relatively low salaries or hourly wages?

Multiple Choice
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A) the contribution of employees is on a pretax basis
B) employees do not contribute to them
C) employees forfeit unused balances present at the end of a year
D) permits employees to carry unused balances from year to year
Answer:

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Q31

________ plans refer to pension plans that do not meet at least one of the minimum standard provisions.

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Answer:

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Q32

________ refers to an employee's nonforfeitable rights to pension benefits.

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Answer:

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Q33

________ plans permit employees to defer part of their compensation to the trust of a qualified defined contribution plan.

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Answer:

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Q34

Fixed first-dollar-of-profits, graduated first-dollar-of-profits, and profitability threshold formulas establish ________ contributions.

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Answer:

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Q35

IRS guidelines define ________ plans as "defined benefit plans that define benefits for each employee by reference to the amount of the employee's hypothetical account balance."

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Q36

________ are nominal payments an individual makes as a condition of receiving services.

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Q37

________ physicians determine when patients need the care of specialists, and help to control costs by reducing the number of unnecessary visits to specialists.

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Q38

Under a preferred provider organization (PPO), higher ________ are set for services rendered by nonnetwork providers to discourage participants from using services outside of the network.

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Q39

According to ________ Act of 2008, a plan must calculate only one deductible for treatment related substance use disorders and medical or surgical benefits.

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Q40

________ accounts allow employees to pay for specified health care costs not covered by an employer's insurance plan.

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Q41

Compare and contrast defined contribution plans with defined benefit plans.

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Q42

Define health insurance concepts such as insurance policy and premium and explain the different types of health insurance programs. What are the differences among these programs?

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Q43

Compare and contrast commercial insurance (fee-for-service) and self-funded insurance.

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