Chapter 13 Insurance for Employees and Professionals Flashcards
After spending an afternoon moving boxes from one storage area to another, an office employee complains of muscle and lower back pain. The worker files a workers’ compensation claim. The company’s standard policy will most likely:
a. cover the employer’s liability for the injury
b. cover only the employee’s medical payments
c. not cover the employee because he is an office employee
d. not cover the claim because the injury occurred outside the employee’s regular scope of work
a. cover the employer’s liability for the injury
Georgina’s 401(k) plan is a type of:
a. ERISA plan
b. profit-sharing plan
c. group thrift or savings plan
d. defined benefits plan
c. group thrift or savings plan
Explain the purpose of a group thrift/savings plan.
They allow the employee to contribute part of their salary to an employer sponsored savings plan
Plans that specify the amount of the periodic payments to the plan, but not the amount of retirement benefits the plan will provide, are called:
a. defined contribution plans.
b. defined benefit plans.
c. pension plans.
d. tracked payment plans
a. defined contribution plans.
All of the following would be covered under employers’ liability insurance EXCEPT:
a. an employee claim for injuries at work resulting from doing a specific task required by the job.
b. a claim made by an employee’s spouse for lost affections because of an employment related injury
c. a third-party claim where an outside manufacturer who was sued by an injured employee files suit because allowed safety features to be removed
d. an employee claim for injuries at work caused in a manner not covered under the worker’s compensation policy
a. an employee claim for injuries at work resulting from doing a specific task required by the job.
What is the experience modification factor?
an adjustment applied to a workers’ compensation premium that reflects the insured’s past loss history
What categories of employees are generally not covered by workers’ compensation insurance?
proprietors in a proprietorship and partners in a partnership
agricultural employees and domestic workers
longshoreman and other employees on navigable waters
What is the Employee Retirement Income Security Act of 1974?
A law that lays out the parameters that pension plans must observe. They dictate when employees must become eligible for pensions and over what period of time their pension becomes vested.
An employee is fired and then files a lawsuit claiming that he was wrongfully terminated because of his age. Which type of professional liability insurance provides the business coverage for this type of exposure?
a. employee benefit liability insurance
b. fiduciary liability insurance
c. employment practices liability insurance
d. directors’ and officers’ liability insurance
c. employment practices liability insurance
What is the purpose of ERISA?
a. to make it easier to get employment practices liability insurance
b. to guarantee directors’ and officers’ liability insurance
c. to explain the regulations of health savings accounts
d. to lay out the parameters that a pension plan must observe
d. to lay out the parameters that a pension plan must observe
For Martine to qualify for worker’s compensation coverage, she had to meet two conditions. Which of the following represent those two conditions?
a. injury by accident that occurred during the policy period; condition was aggravated while working at home
b. injury by accident that occurred during the policy period; last day of exposure to the conditions causing the injury during the policy period
c. employee on navigable waters; last day of exposure to the conditions causing the injury occurred during the policy period
d. injury by accident occurred on the way to work; injury prevented her from getting to work on the day of the accidental injury
b. injury by accident that occurred during the policy period; last day of exposure to the conditions causing the injury during the policy period
What is retrospective rating?
A rating plan in which a business estimates its projected losses and pays an estimated premium or deposit; then later pays a premium based on the actual losses the business sustains during the policy period.
Deductibles and coinsurance percentages _______ medical policies and to policies for property and casualty insurance.
a. do not apply to
b. apply very differently to
c. apply in the same way to
d. always apply per occurrence to
b. apply very differently to
Claims involving the administration of employee benefit plans are generally plans are generally covered if they involve all of the following except:
a. interpreting employee benefit programs
b. handling records in connection with employee benefit programs.
c. handling losses relating to breach of fiduciary responsibility
d. effecting enrollment, termination, or cancellation under employee benefit programs
c. handling losses relating to breach of fiduciary responsibility
For insured that have been in business for a few years and are of a certain minimum premium size, which of these may apply?
a. minimum experience factor
b. legal liability factor
c. regulatory factor
d. experience modification factor
d. experience modification factor
