HURM 4640 Exam 2 ACTUAL UPDATED
QUESTIONS AND CORRECT ANSWERS
Worker's compensation plans provide complete medical care for work-connected injuries
with no waiting period. - CORRECT ANSWERS✅✅True
The cost of state Worker's Compensation plans are placed completely on employers -
CORRECT ANSWERS✅✅True
The cost of state Worker's compensation plans are experience rated and vary according to the
risks of the various occupations of the employees, the actual experience of the employer and,
to some extent, by the size of the firm's work force. - CORRECT ANSWERS✅✅True
Most salary continuation plans require an employee to satisfy a short (1-3 month)
probationary period before becoming eligible for benefits. - CORRECT ANSWERS✅✅True
Most salary continuation plans are designed to provide benefits equal to no more than 50
percent of an employee's regular pay. - CORRECT ANSWERS✅✅False
A person is more likely to be disabled for at least 90 days before age 65 than to die.
7. The - CORRECT ANSWERS✅✅True
The primary reason for coordinating group disability income benefits with other sources of
disability income benefits is that the lack of coordination can lead to such a generous level of
benefits that absences from work because of disability might either be falsified or
unnecessarily prolonged. - CORRECT ANSWERS✅✅True
Salary continuation plans usually replace 100 percent of salary at least in the short term. -
CORRECT ANSWERS✅✅True
A majority of long-term disability plans use a dual definition of disability that is more liberal
at first and becomes more restrictive after 24 to 36 months. - CORRECT
ANSWERS✅✅True
,Short-term disability income contracts most often provide coverage for partial disabilities -
CORRECT ANSWERS✅✅False
In most short-term disability contracts, there is no waiting period for disabilities resulting
from accidents. - CORRECT ANSWERS✅✅True
Short-term plans usually have a benefit reduction for older employees - CORRECT
ANSWERS✅✅False
Short-term disability plans are often integrated with other disability income benefits -
CORRECT ANSWERS✅✅False
Employer contributions to disability income plans are fully deductible as an ordinary and
necessary business expense as long as the overall compensation of the employee is
reasonable. - CORRECT ANSWERS✅✅True
Employer contributions for disability income insurance do not result in taxable income to
an employee. - CORRECT ANSWERS✅✅True
Employers are less likely to provide disability coverage than either life insurance or
medical expense benefits. - CORRECT ANSWERS✅✅True
Premiums for salary continuation plans (sick leave) are usually paid by the employer. -
CORRECT ANSWERS✅✅False
Usually sick leave plans are uninsured by definition. - CORRECT ANSWERS✅✅True
In primary integration, the LTD (long-term disability) benefit is reduced only by the amount
the disabled worker receives from Social Security, not by the amount his/her family receives.
- CORRECT ANSWERS✅✅True
Which of the following statements concerning salary continuation plans is (are) correct?
, I. Most plans require an employee to satisfy a probationary period before becoming
eligible for benefits.
II. Most plans are designed to provide benefits equal to no more than 50 percent of
an employee's regular pay. - CORRECT ANSWERS✅✅A. I only
All the following statements concerning group disability income contracts are correct
EXCEPT? - CORRECT ANSWERS✅✅A. The insurance company usually offers a
conversion policy to any terminating employee who was covered under the contract for at
least 2 years.
All the following statements concerning the eligibility requirements of insured disability
income plans are correct EXCEPT? - CORRECT ANSWERS✅✅C. Short-term plans tend to
have longer probationary periods than do long-term plans.
Which of the following statements concerning insured group disability income benefits is
correct? - CORRECT ANSWERS✅✅D. Both long-term and short-term plans usually place
a dollar maximum on periodic benefits, regardless of worker=s earnings.
Which of the following statements concerning the typical group short-term disability
insurance contract is correct? - CORRECT ANSWERS✅✅D. The maximum benefit period
applies to each separate disability.
All of the following causes of disability are covered under a typical group short-term
disability income contract EXCEPT: - CORRECT ANSWERS✅✅A. self-inflicted injuries.
Peter Nelson has been totally and permanently disabled for the past 3 years. He is single and
has annual investment income of $5,000 in addition to social security benefits and $6,000 in
annual long-term disability benefits from his employer's group disability income plan. While
he was actively employed, he was required to pay 40 percent of the cost of his coverage
under the employer plan. How much of Peter's disability benefit from the employer's plan is
includible in his gross income for federal income tax purposes? - CORRECT
ANSWERS✅✅D. $3,600
Long-term disability income plans are usually integrated with all of the following EXCEPT: -
CORRECT ANSWERS✅✅D. individual disability income contracts purchased by
employees.
QUESTIONS AND CORRECT ANSWERS
Worker's compensation plans provide complete medical care for work-connected injuries
with no waiting period. - CORRECT ANSWERS✅✅True
The cost of state Worker's Compensation plans are placed completely on employers -
CORRECT ANSWERS✅✅True
The cost of state Worker's compensation plans are experience rated and vary according to the
risks of the various occupations of the employees, the actual experience of the employer and,
to some extent, by the size of the firm's work force. - CORRECT ANSWERS✅✅True
Most salary continuation plans require an employee to satisfy a short (1-3 month)
probationary period before becoming eligible for benefits. - CORRECT ANSWERS✅✅True
Most salary continuation plans are designed to provide benefits equal to no more than 50
percent of an employee's regular pay. - CORRECT ANSWERS✅✅False
A person is more likely to be disabled for at least 90 days before age 65 than to die.
7. The - CORRECT ANSWERS✅✅True
The primary reason for coordinating group disability income benefits with other sources of
disability income benefits is that the lack of coordination can lead to such a generous level of
benefits that absences from work because of disability might either be falsified or
unnecessarily prolonged. - CORRECT ANSWERS✅✅True
Salary continuation plans usually replace 100 percent of salary at least in the short term. -
CORRECT ANSWERS✅✅True
A majority of long-term disability plans use a dual definition of disability that is more liberal
at first and becomes more restrictive after 24 to 36 months. - CORRECT
ANSWERS✅✅True
,Short-term disability income contracts most often provide coverage for partial disabilities -
CORRECT ANSWERS✅✅False
In most short-term disability contracts, there is no waiting period for disabilities resulting
from accidents. - CORRECT ANSWERS✅✅True
Short-term plans usually have a benefit reduction for older employees - CORRECT
ANSWERS✅✅False
Short-term disability plans are often integrated with other disability income benefits -
CORRECT ANSWERS✅✅False
Employer contributions to disability income plans are fully deductible as an ordinary and
necessary business expense as long as the overall compensation of the employee is
reasonable. - CORRECT ANSWERS✅✅True
Employer contributions for disability income insurance do not result in taxable income to
an employee. - CORRECT ANSWERS✅✅True
Employers are less likely to provide disability coverage than either life insurance or
medical expense benefits. - CORRECT ANSWERS✅✅True
Premiums for salary continuation plans (sick leave) are usually paid by the employer. -
CORRECT ANSWERS✅✅False
Usually sick leave plans are uninsured by definition. - CORRECT ANSWERS✅✅True
In primary integration, the LTD (long-term disability) benefit is reduced only by the amount
the disabled worker receives from Social Security, not by the amount his/her family receives.
- CORRECT ANSWERS✅✅True
Which of the following statements concerning salary continuation plans is (are) correct?
, I. Most plans require an employee to satisfy a probationary period before becoming
eligible for benefits.
II. Most plans are designed to provide benefits equal to no more than 50 percent of
an employee's regular pay. - CORRECT ANSWERS✅✅A. I only
All the following statements concerning group disability income contracts are correct
EXCEPT? - CORRECT ANSWERS✅✅A. The insurance company usually offers a
conversion policy to any terminating employee who was covered under the contract for at
least 2 years.
All the following statements concerning the eligibility requirements of insured disability
income plans are correct EXCEPT? - CORRECT ANSWERS✅✅C. Short-term plans tend to
have longer probationary periods than do long-term plans.
Which of the following statements concerning insured group disability income benefits is
correct? - CORRECT ANSWERS✅✅D. Both long-term and short-term plans usually place
a dollar maximum on periodic benefits, regardless of worker=s earnings.
Which of the following statements concerning the typical group short-term disability
insurance contract is correct? - CORRECT ANSWERS✅✅D. The maximum benefit period
applies to each separate disability.
All of the following causes of disability are covered under a typical group short-term
disability income contract EXCEPT: - CORRECT ANSWERS✅✅A. self-inflicted injuries.
Peter Nelson has been totally and permanently disabled for the past 3 years. He is single and
has annual investment income of $5,000 in addition to social security benefits and $6,000 in
annual long-term disability benefits from his employer's group disability income plan. While
he was actively employed, he was required to pay 40 percent of the cost of his coverage
under the employer plan. How much of Peter's disability benefit from the employer's plan is
includible in his gross income for federal income tax purposes? - CORRECT
ANSWERS✅✅D. $3,600
Long-term disability income plans are usually integrated with all of the following EXCEPT: -
CORRECT ANSWERS✅✅D. individual disability income contracts purchased by
employees.
