Quizzes for last RM370 Exam

For the purposes of private disability insurance plans, is an inability to perform the duties of one's regular job for a limited period (e.g., six months).

short-term disability

Contractual relationship between an insurance company and beneficiary that specifies the obligations of both parties. For example, a health insurance company specifies that it will cover the cost of physical examinations, and a life insurance company agrees to pay a spouse an amount equal to double of his deceased wife's annual salary.

insurance policy

Covers death or dismemberment as a result of an accident.

accidental death and dismemberment insurance

The 1990 amendment to the Age Discrimination in Employment Act of 1967.

Older Workers Benefit Protection Act (OWBPA)

The most common type of life insurance offered by companies; provides protection to an employee's beneficiaries only during a limited period based on a specified number of years or maximum age. After that, insurance automatically expires. May allow conversion to whole life within 30 days after termination of employment.

term life insurance

Prohibits discriminatory employment practices against qualified individuals with disabilities.

Americans with Disabilities Act (ADA)

The company pays the total costs of each discretionary benefit.

noncontributory plans

Spans from the initial date of hire to eligibility for coverage in a disability insurance program.

pre-eligibility period

In insurance plans, a list of the particular conditions that are ineligible for coverage. For example, most disability insurance plans do not provide coverage for disabilities that result from self-inflicted injuries.

exclusion provision

A mental or physical disability for which medical advice, diagnosis, care, or treatment was received during a designated period preceding the beginning of disability or health insurance coverage.

preexisting condition

Short-term disability (STD) insurance programs classify a disability as an employees inability to do his or her work due to a sickness, illness, or injury. Which of the following circumstances usually does not qualify an employee for STD benefits?

recovery from surgery

normal pregnancy and normal child birth

recovery from injuries

treatment of an illness requiring hospitalization

normal pregnancy and normal child birth

Long-term disability insurance carriers use a two-stage definition of disability. At the first stage, long-term disability refers to

- an illness or injury preventing an employee from performing "any occupation", often up to two years.

- an illness or injury preventing an employee from performing his or her "own occupation" over a designated period, often to age 65.

- an illness or injury preventing an employee from performing "any occupation", often up to age 65.

- an illness or injury preventing an employee from performing his or her "own occupation" over a designated period, often up to two years.

an illness or injury preventing an employee from performing his or her "own occupation" over a designated period, often up to two years.

Employer-sponsored disability insurance plans generally supplement legally required benefits established by which law?

- Employee Retirement Income Security Act

- Fair Labor Standards Act

- Family Medical Leave Act

- Social Security Act

Employee Retirement Income Security Act

Which of the following statements is true regarding employer-sponsored discretionary disability benefits?

- Long-term disability (LTD) benefits usually provide benefits to age 65.

- Long-term disability (LTD) benefits usually provide benefits up to two years.

- Short-term disability (STD) benefits usually provide benefits up to two years.

- Short-term disability (STD) benefits usually provide benefits to age 65.

Long-term disability (LTD) benefits usually provide benefits to age 65.

Which of the following statements is not true about sick leave policies?

- Sick leave policies are separate from disability plans.

- Sick leave policies provide only 50% income replacement to eligible employees.

- Sick leave compensates employees when they are occasionally absent due to minor illness or injury.

- Sick leave benefits are paid from the regular payroll, rather than through insurance policies.

Sick leave policies provide only 50% income replacement to eligible employees.

Maya had average earnings of $6,000 a month before she became disabled. She, her non-working spouse, and their children under the age of 16 are eligible for a $2,200 monthly family Social Security disability benefits. She also receives $3,600 a month from employer-provided group long-term disability benefits. Her family's monthly Social Security benefits will be reduced by

- $600

- $200

- $0

- $1,400

$0

All of the following are common offset provisions in employer-provided group long-term disability plans EXCEPT

- Social Security disability benefits.

- Residual disability.

- None. ERISA doesn't allow offset provisions in employer-provided group long-term disability plans.

- Workers' compensation benefits.

None. ERISA doesn't allow offset provisions in employer-provided group long-term disability plans.

The offset in Social Security for Disability Insurance recipients concurrently eligible for workers' compensation limits the combined amount of workers' compensation and Social Security disability benefits to ___ percent of the workers' average current earnings.

- 90%

- 100%

- 80%

- 70%

80%

Theresa's employer provides her with group-term life insurance coverage of $200,000. Her employer pays all the premium. The annual premium for her coverage is $360. How much of the premium must her employer include on Theresa's W-2?

- $360

- $270

- $0

- $90

$270

All of the following statements are true about employer-sponsored life insurance EXCEPT

- generally requires each employee to be individually underwritten..

- most plans include accidental death and dismemberment claims.

- protects surviving family members by paying a specified amount upon an employee's death.

- most benefits equal some multiple of an employee's salary.

generally requires each employee to be individually underwritten..

In short-term disability insurance plans, this term refers to the minimum amount of time an employee must wait after becoming disabled before disability insurance payments begin.

- Full integration period

- Pre-eligibility period

- Exclusion period

- Elimination period

Elimination period

Most long-term disability insurance plans pay how much after a waiting period of how long?

- 70 - 90%, after 6 - 12 months

- 50 - 70% after 6 - 12 months

- 70 - 90%, after 3 - 6 months

- 50 - 70% after 3 - 6 months

50 - 70% after 6 - 12 months

These reduce company-sponsored benefits by subtracting a particular percentage of these disability benefits from workers' compensation and Social Security disability plans.

- Offset provisions

- Exclusion provisions

- Elimination provisions

- Limited integration provisions

Offset provisions

If an employee suffers a disability that limits the kind of work an individual can perform on an enduring basis, she would qualify for what type of disability income under workers' compensation?

- Permanent total disability

- Permanent partial disability

- Temporary total disability

- Temporary partial disability

Permanent partial disability

Which of the following statements is not true about sick leave policies?

- Sick leave policies are separate from disability plans.

- Sick leave benefits are paid from the regular payroll, rather than through insurance policies.

- Sick leave compensates employees when they are occasionally absent due to minor illness or injury.

- Sick leave policies provide only 50% income replacement to eligible employees.

Sick leave policies provide only 50% income replacement to eligible employees.

All of the following are common offset provisions in employer-provided group long-term disability plans EXCEPT

- Social Security disability benefits.

- Workers' compensation benefits.

- Residual disability.

- None. ERISA doesn't allow offset provisions in employer-provided group long-term disability plans.

None. ERISA doesn't allow offset provisions in employer-provided group long-term disability plans.

Jeff had average earnings of $8,000 a month before he became disabled. He, his non-working spouse, and their children under the age of 16 are eligible for a $2,200 monthly family Social Security disability benefits. He also receives $4,800 a month from employer-provided group long-term disability benefits. His family's monthly Social Security benefits will be reduced by

- $0

- $600

- $200

- $1,400

$0

Which of the following sources of disability payments does affect Social Security disability benefits?

- Disability payments from employer-provided group long-term disability benefits.

- Lump-sum workers' compensation settlement.

- Veterans Administration benefits.

- Individually purchased disability insurance.

Lump-sum workers' compensation settlement.

The death benefit of a group-term life insurance policy is paid to the beneficiary or beneficiaries selected by the employee. What's the tax treatment of the death proceeds of group-term life insurance?

- The death benefit is not subject to ordinary income tax only if its under a noncontributory plan.

- The death benefits is income tax free.

- The death benefit is subject to ordinary income tax.

- The death benefit is not subject to ordinary income tax only if its under a contributory plan.

The death benefits is income tax free.

Theresa's employer provides her with group-term life insurance coverage of $200,000. Her employer pays all the premium. The annual premium for her coverage is $360. How much of the premium must her employer include on Theresa's W-2?

- $0

- $360

- $270

- $90

$270

Provides paid time-off for employees, usually following the death of a relative. Policy specifies the relatives whose death qualifies employees for leave. Also known as funeral leave.

bereavement leave

Permits employees to take unused vacation time awarded for a calendar or fiscal year during a subsequent calendar or fiscal year.

carryover provisions

Allow employees to take paid time-off to observe any holiday not included on the employer's list of recognized paid holidays.

floating holidays

Enables employees to schedule time-off without justifying the reasons.

integrated paid time-off policy

Does not permit employees to have unused vacation time awarded for a calendar or fiscal year during a subsequent calendar or fiscal year.

use-it-or-lose-it provisions

Provides protection in cases of family or medical emergency. Permits eligible employees to take up to a total of 12 workweeks of unpaid leave during any 12-month period for family or medical emergencies.

Family and Medical Leave Act (FMLA)

Benefits that compensate employees for a specified number of days absent due to occasional minor illness or injury.

sick leave

Policies that compensate employees when they are not performing their primary work duties. Offered by companies as a matter of custom, particularly paid holidays, vacations, and sick leave.

paid time-off

Paid time off for professional development activities such as professional certification, conducting research, and curriculum development.

sabbatical leave

Alternative work arrangements in which employees perform work at home or some other location besides the office.

telecommuting

A variety of possible uses of time related to, but not actually performing, an employee's main job duties or to periods of nonwork time during a work shift. Time related to the performance of job duties includes cleanup, preparation, and travel between job locations and time during a work shift includes rest periods or "breaks" and periods to eat a meal.

non-production time

Pay employees an amount equal to the unused vacation days based on regular daily earnings.

cash out provisions

In unionized setting, the collective bargaining agreement or contract details employee entitlements to paid time-off benefits.

True

Private-sector U.S. companies offer most paid time-off benefits to employees on a discretionary basis.

True

Full-time employees and part-time employees enjoy the same paid time-off benefits.

False

When companies determine vacation time according to hours worked, it usually applies to workers who are exempt to FLSA regulations.

False

Part-time employees must be eligible for vacation benefits.

False

In most companies, employees cannot use floating holidays to extend vacation leave.

False

Sick leave policy is contained within the disability policy.

False

Passage of the FMLA bestowed rights upon workers to take substantial unpaid time off work to attend to serious personal illness or qualifying family events, and it created return-to-work protections.

True

According to FMLA guidelines, employees must give how much notice for a scheduled unpaid leave?

- 60 days

- 7 days

- 30 days

- 14 days

30 days

Which of the following is true concerning FMLA provisions?

- The time-off is unpaid and medical insurance is discontinued

- The time-off is paid, but medical insurance is discontinued

- The time-off is unpaid, but medical insurance is continued

- The time-off is paid and medical insurance is continued

The time-off is unpaid, but medical insurance is continued

What is the maximum daily rate of pay provided by FFCRA for an employee that earns $750 a day working for a covered employer subject to FFCRA if the employee takes time off to care for his/her child whose school or place of care is closed?

- $0

- $750

- $511

- $200

$200

If an employer subject to FFCRA closes the worksite and furloughs all employees on or after April 1, 2020 but before an employee goes on leave, he or she can still get paid sick leave and/or expanded family and medical leave under FFCRA?

False

Butler University is subject to FFCRA?

False

A full-time employee (40 hours weekly) works for an employer subject to FFCRA and is experiencing symptoms of COVID-19 and is seeking medical diagnosis. She is not subject to paid sick leave but may take unpaid FMLA leave.

False

If an employer provides group health coverage that an employee elected, he/she is entitled to continued group health coverage during FFCRA provided expanded family and medical leave on the same terms as if he/she continued to work.

True

The FFCRA's paid leave provisions are effective on April 1, 2020, and apply to leave taken between April 1, 2020, and December 31, 2020.

True

An employee can collect unemployment insurance for time in which he/she receives FFCRA pay for paid sick leave and/or expanded family and medical leave.

False

FFCRA requires all leave under FMLA to be paid.

False

An employee that works for a FFCRA covered employer takes time off to care of his/her child whose school or place of care is closed? Which of the following statements is true in this situation?

- The employee may take a maximum of ten weeks expanded family and medical leave.

- The employee may take a maximum of two weeks paid sick leave.

- The employee may take a maximum of two weeks paid sick leave and an additional ten weeks expanded family and medical leave.

- The employee may take up to twelve weeks unpaid family and medical leave.

The employee may take a maximum of two weeks paid sick leave and an additional ten weeks expanded family and medical leave.

What is the maximum daily rate of pay provided by FFCRA for an employee that earns $750 a day working for a covered employer subject to FFCRA if the employee takes sick leave after being advised by a health care provider to self-quarantine due to concerns related to COVID-19?

- $0 per day

- $750 per day

- $200 per day

- $511 per day

$511 per day

Family assistance programs include day care, elder care and childcare.

True

In the 1940s, companies adopted a rehabilitative rather than punitive approach towards alcohol consumption.

True

Employers that use referral EAPs usually do NOT have a contractual relationship with service providers.

True

Stress management programs offered to employees can ultimately lead to increased productivity.

True

Scholarship programs extend to all members of an employee's family.

False

The scope of various wellness-type benefits has decreased through recent years as employer costs are outweighing the benefits of offering such programs.

False

Promoting educational opportunities, including tuition reimbursement and scholarships, yields benefits for employees as they are able to acquire greater credentials to compete for higher-level jobs in the company.

True

Companies offer accommodation and enhancement benefits to promote effective coping skills and educational benefits for employees.

True

Which one of the following is not a wellness program?

- Back care

- Smoking cessation

- Telecommuting

- Stress management

Telecommuting

Which of the following is not a condition that led to the inclusion of outplacement programs in EAPs?

- Mergers

- Plant closings

- Government laws

- Layoffs

Government laws

Symptoms of stressful workplaces include low morale, chronic absenteeism, low productivity, and high turnover rates.

True