Exam 3 - Principles of Insurance review (first 15 questions)

Which of the following is a reason that social insurance programs exist?

A) to compete with private insurance programs
B)to provide a base of economic security
C) to provide needs-tested benefits to low-income individuals
D) to reduce involvement of the government in insurance markets

B) to provide a base of economic security

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

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 insurance is voluntary
D) Social insurance programs must be fully funded at all times to pay required benefits.

A) Benefits are loosely related to a worker's earnings.

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

A) They are designed to provide a floor of income with respect to the risks that are covered.
B) Social insurance benefits payments are unrelated to income.
c) Participants are required to satisfy a means test to receive benefits.
D) With few exceptions, participation in social insurance programs is voluntary.

A) They are designed to provide a floor of income with respect to the risks that are covered.

Which of the following statements about participation in the Social Security program is (are) true?
I. Most private sector employees are covered under the Social Security program.
II. Each employee has the right to "opt out" of the Social Security program if the employee does not wish to participate in the program.

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

A) I only

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

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

D) currently insured.

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?

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.

A) He is currently and fully insured.

Which of the following statements about the full retirement age under the Social Security program is true?

A) The current retirement age for full benefits is age 62.
B) Beginning in the year 2025, the retirement age will be gradually increased to age 75.
C) Early retirement with reduced benefits is allowed as early as age 55. D) Delayed retirement beyond the age for full benefits increases the amount of the monthly benefit.

D) Delayed retirement beyond the age for full benefits increases the amount of the monthly benefit.

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

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.

A) a divorced spouse, age 55, who was married to the retired worker for 6 years.

All of the following persons are eligible for survivor benefits under Social Security EXCEPT

A) dependent parents age 62 or older.
B) a surviving brother or sister, age 60 or older.
C) a surviving spouse age 60 or older. D) a surviving spouse with eligible children younger than age 16.

B) a surviving brother or sister, age 60 or older.

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

A) There is a one-year waiting period before benefits are payable.
B) Benefits are payable as long as the disabled worker is unable to perform his or her regular occupation.
C) Benefits are payable only if the condition causing the disability is expected to result in death prior to age 65.
D) In addition to the disabled worker receiving the benefits, benefits can also be paid to eligible dependents.

D) In addition to the disabled worker receiving the benefits, benefits can also be paid to eligible dependents.

Which of the following statements about the coverage of health care services under Part A of Medicare is (are) true?
I. Services in the patient's home are covered if the patient requires skilled care and meets certain conditions.
II. Hospice care is available for beneficiaries with a terminal illness.

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

C) both I and II

Which of the following expenses is covered under the medical insurance (Part B) portion of the Medicare program?

A) long-term care in a skilled nursing facility
B) the fee charged by a surgeon for an operation
C) the cost of a semi-private room during a hospital stay
D) routine prescription drugs outside of the hospital

B) the fee charged by a surgeon for an operation

Which of the following statements about the medical insurance (Part B) portion of Medicare is (are) true?
I. Participation in Part B of Medicare is voluntary.
II. It is provided at no cost to anyone who is fully insured under Medicare.

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

A) I only

Objectives of unemployment insurance include which of the following?
I. To help unemployed workers find jobs.
II. To encourage employers to stabilize employment.

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

C) both I and II

In order to receive unemployment insurance benefits, an unemployed worker must meet all of the following eligibility requirements EXCEPT

A) have qualifying wages and employment.
B) be able to work.
C) be actively seeking work.
D) satisfy a 6-month waiting period.

D) satisfy a 6-month waiting period.