M1: Quizzes Flashcards
Complete
The health care reform law calls for providing an SBC to applicants and enrollees. The proposed regulations interpret the limitation as
double-sided pages.
A. two
B. six
C. ten
D. four
D. four
The DOL defines a ______ ________ in a health plan as any modification or change that incorporates the following:
- Eliminates benefits payable under the plan
- Reduces benefits payable under the plan (for example, from a change in formulas, methodologies, or schedules that serve as the basis for benefit determinations)
- Increases deductibles, copayments, or other amounts paid by a participant
A. summary modification
B. material reduction
C. reverse clawback
D. actuarial reduction
B. material reduction
_______ issued a safe harbor rule, meaning that plans are not required to comply with its conditions. However, compliance ensures that the plan’s electronic delivery method is found to be acceptable.
A. The IRS
B. The DOL
C. The PBGC
D. The FTC
B. The DOL
______ ______, including participant contributions, may be used only to pay plan benefits and reasonable administration costs.
A. Plan forfeitures
B. Investment income
C. Material modifications
D. Plan assets
D. Plan assets
______ is the main federal statute that provides the regulatory framework for private pension plans and employee welfare benefit plans.
A. The PPACA
B. The PBGC Act
C. ERISA
D. GINA
C. ERISA
A plan established and maintained for employees that is exempt from taxes under the IRS code section 501 is a ________ plan.
A. Church
B. MEPP
C. Association
D. Cafeteria
A. Church
If a plan is intended to be exempt, the DOL warns that ______ regulations do not allow employers to pay an employee’s premium while the employee is out.
A. FLSA
B. FMLA
C. FASB
D. IRS
B. FMLA
The term _____ has been interpreted broadly to include employees in, or reasonably expected to be, and currently covered employment.
A. Beneficiary
B. Dependent
C. Fiduciary
D. Participant
D. Participant
A _____ must be furnished automatically to participants when a plan is amended.
A. Form 5500
B. SPD
C. Investment policy statement
D. SMM
D. SMM
A ________ bond must be purchased to cover every person who handles plan funds.
A. Fidelity
B. Board
C. plan
D. fiduciary
A. Fidelity
A(n) _______ is a planned document that supplements an insurance companies certificate of coverage or insurance contract with the missing ERISA provisions.
A. Open plan document
B. Closed planned document
C. Wrapper plan document
D. Circular plan document
C. Wrapper plan document
All of the following are correct regarding acceptable methods of distributing required ERISA disclosure documents, except:
A. In-hand delivery to employees
B. First-class mail
C. Second or third-class mail, but return in forwarding postage is not guaranteed
D. Inclusion in a union or company publication, but only if certain requirements are met
C. Second or third-class mail, but return in forwarding postage is not guaranteed
(postage must be guaranteed)
If a summary plan description (SPD ) is not provided to a plan participant within 30 days of a written request, the plan administrator may be charged up to $____ per day.
A. $100
B. $210
C. $150
D. $110
D. $110
The Employee Retirement Income Security Act (ERISA), the regulatory framework for private plans as well as employee benefit plans, was enacted into legislation in ____.
A. 1969
B. 1980
C. 1974
D. 1976
C. 1974
When there is a discrepancy between the plan document and the summary plan description (SPD), courts have often ruled that the _____ terms will be enforced if they are more beneficial to the plans participants.
A. Plan document
B. SBC
C. SMM
D. SPD
D. SPD