Chapter 2 - Social Security & Work Comp

Question 1

Social Security provides each of the following benefits EXCEPT:
 A. Survivor benefits
 B. Retirement benefits
 C. Disability benefits
 D. Unemployment benefits

Answer 1

d. Unemployment benefits

Question 2

Each of the following statements regarding Social Security Retirement benefits is correct EXCEPT:
A. Congress can change benefit levels.
B. The benefit amount will vary if the worker retires early or late.
C. A worker must have fully insured status to be eligible for retirement benefits.
D. Retirement benefits will be reduced if the worker has retirement income from a company-sponsored retirement plan.

Answer 2

d. Retirement benefits will be reduced if the worker has retirement income from a company-sponsored retirement plan.

Question 3

John and Carol are a married couple in their early twenties. John has worked full time at the local factory for 3 years. It is his first job. John is killed in a tragic golfing accident. Carol is eligible for which of the following:
A. Enrollment in Medicare.
B. John’s retirement benefits, but not until age 65.
C. A single lump sum survivor benefit of $255.
D. A monthly check in the amount of John’s PIA.

Answer 3

c. A single lump sum survivor benefit of $255.

Question 4

To be fully insured under OASDI rules, one must have been employed for at least:
 A. 180 days
 B. 30 months
 C. 3 years
 D. 40 quarters

Answer 4

d. 40 quarters

Question 5

The maximum Social Security payment for disability income is:
A. 35% of the PIA (Primary Insurance Amount).
B. 50% of the PIA (Primary Insurance Amount).
C. 75% of the PIA (Primary Insurance Amount).
D. 100% of the PIA (Primary Insurance Amount).

Answer 5

d. 100% of the PIA (Primary Insurance Amount).

Question 6

Molly is injured in a work-related accident. Molly is considering filing a negligence lawsuit against her employer.
A. Molly may recover under Work Comp and sue her employer.
B. Work Comp is Molly’s sole remedy - she cannot win a lawsuit against the employer.
C. Because work comp applies, Molly will not be eligible for Social Security if she is totally disabled.
D. Molly must make a decision to sue her employer or file a work comp claim - the choice is hers.

Answer 6

b. Work Comp is Molly’s sole remedy - she cannot win a lawsuit against the employer.

Question 7

A policy that covers losses due to employment is known as “occupational coverage.”  A policy that does NOT cover losses due to employment is known as:
 A. Illegal
 B. Occupational
 C. Nonoccupational
 D. Void

Answer 7

c. Nonoccupational

Question 8

Under Social Security, a worker that is fully insured would be eligible for each of the following benefits EXCEPT:
 A. Hospital benefits
 B. Retirement benefits
 C. Survivor benefits
 D. Disability benefits

Answer 8

a. Hospital benefits

Question 9

Which of the following is required for a worker to be eligible for disability benefits under Social Security?
A. The worker must be age 65.
B. The worker must first enroll in Medicaid.
C. The worker must need help with at least two activities of daily living.
D. The worker must have fully insured status.

Answer 9

d. The worker must have fully insured status.

Question 10

To qualify for Old Age and Survivors Disability Insurance, one must:
A. Have been employed full time for only two of the last 3 quarters.
B. Have been employed for at least 40 quarters.
C. Have worked for the federal or state government.
D. Have been self-employed.

Answer 10

b. Have been employed for at least 40 quarters.