HURM 4640 EXAM 2
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personalized success 2025
Which of the following statements about controlling employee-
benefit-plan costs is (are) correct?
I. The use of probationary periods tends to reduce adverse
selection.
II. Cost savings that result from contributory plans may be
offset by increased adverse selection and increased
administrative costs.
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 techniques focuses more on transferring
costs to employees than on cost containment?
A. competitive bidding
B. wellness program
C. benefit limitations
D. alternative funding
C. benefit limitations
,Issues that must be addressed when outsourcing benefit
administration include which of the following?
I. Confidentiality of data
II. Vendor responsibility for systems upgrades
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 is not one of the four primary objectives
of an effective program for communicating benefit plans to
employees?
A. to encourage the limited use of benefits
B. to provide a high level of understanding concerning available
benefits
C. to create an awareness of and appreciation for the way in
which current benefits improve the financial security of
employees
D. to comply with legal requirements
A. to encourage the limited use of benefits
(T/F) Worker's compensation plans provide complete medical
care for work-connected injuries with no waiting period.
True
,(T/F) The cost of state Worker's Compensation plans are placed
completely on employers
True
(T/F) 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.
True
(T/F) Most salary continuation plans require an employee to
satisfy a short (1-3 month) probationary period before
becoming eligible for benefits.
True
(T/F) Most salary continuation plans are designed to provide
benefits equal to no more than 50 percent of an employee's
regular pay.
False; usually 100% and can be reduced after 1 period of full
pay
, (T/F) A person is more likely to be disabled for at least 90 days
before age 65 than to die.
True
(T/F) 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.
True
(T/F) Salary continuation plans usually replace 100 percent of
salary at least in the short term.
True
(T/F) 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.
True
(T/F) Short-term disability income contracts most often provide
coverage for partial disabilities.
False
study set with 100% verified solutions-
personalized success 2025
Which of the following statements about controlling employee-
benefit-plan costs is (are) correct?
I. The use of probationary periods tends to reduce adverse
selection.
II. Cost savings that result from contributory plans may be
offset by increased adverse selection and increased
administrative costs.
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 techniques focuses more on transferring
costs to employees than on cost containment?
A. competitive bidding
B. wellness program
C. benefit limitations
D. alternative funding
C. benefit limitations
,Issues that must be addressed when outsourcing benefit
administration include which of the following?
I. Confidentiality of data
II. Vendor responsibility for systems upgrades
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 is not one of the four primary objectives
of an effective program for communicating benefit plans to
employees?
A. to encourage the limited use of benefits
B. to provide a high level of understanding concerning available
benefits
C. to create an awareness of and appreciation for the way in
which current benefits improve the financial security of
employees
D. to comply with legal requirements
A. to encourage the limited use of benefits
(T/F) Worker's compensation plans provide complete medical
care for work-connected injuries with no waiting period.
True
,(T/F) The cost of state Worker's Compensation plans are placed
completely on employers
True
(T/F) 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.
True
(T/F) Most salary continuation plans require an employee to
satisfy a short (1-3 month) probationary period before
becoming eligible for benefits.
True
(T/F) Most salary continuation plans are designed to provide
benefits equal to no more than 50 percent of an employee's
regular pay.
False; usually 100% and can be reduced after 1 period of full
pay
, (T/F) A person is more likely to be disabled for at least 90 days
before age 65 than to die.
True
(T/F) 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.
True
(T/F) Salary continuation plans usually replace 100 percent of
salary at least in the short term.
True
(T/F) 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.
True
(T/F) Short-term disability income contracts most often provide
coverage for partial disabilities.
False
