Module 5 Flashcards
Employee Group Benefits
The purpose of group life insurance is to ?
temporarily fill the earnings gap that would result from a worker’s death, thus protecting the financial well-being of the worker’s survivors.
A group life policy can be established as a ? or a ?.
contributory plan; noncontributory plan
What is a contributory plan?
employee pays some portion of premiums.
What is a noncontributory plan?
employer pays entire premium cost.
Group life insurance coverage usually is based on a percentage (or multiple) of ?.
compensation
What is group term life insurance?
a type of life insurance coverage provided by an employer or organization to its employees or members. these policies typically provide a lump-sum payment of the face amount of the insurance to beneficiaries at the insured employee’s death. Generally, the employee may name any party as beneficiary. (State law may prohibit naming the employer as beneficiary.) Although a lump sum is the common form of payment, the employee may have the right to elect an installment payout if specified in the master policy.
What are 3 common formulas that apply uniformly to all plan participants in a group term life insurance policy?
A percentage or multiple of earnings
An amount of coverage based on years of service
A coverage limit for different classes of employees
A group term life insurance policy typically includes ? benefits, such as the right to convert to permanent coverage after the group coverage terminates, an additional feature (or features) that provides no economic benefit other than current insurance protection, and term life coverage with level premiums for up to five years.
ancillary
What is Section 79 of the Internal Revenue Code?
governs the taxation of group term life insurance provided by an employer. It allows employees to receive up to $50,000 of employer-paid group term life insurance coverage tax-free. However, if coverage exceeds this amount, the excess is considered imputed income and is subject to taxation based on IRS Table I rates.
Life insurance does not qualify as group term life insurance if provided to fewer than ? employees.
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What are the 4 requirements for the Section 79 tax benefit?
- The coverage must provide a general benefit.
- The coverage must be provided to a group of employees as part of their compensation for services rendered as an employee.
- The insurance policy must be provided by the employer as either a master policy or a group of individual policies.
- The amount of insurance provided to each employee must be consistent with no individual selection.
For the plan to qualify for favorable tax treatment (i.e., the employee’s $50,000 exclusion and employer’s deduction), Internal Revenue Code Section 79 requires that a group term policy furnished by the employer must not ?.
not discriminate in favor of key employees.
Two types of AD&D coverage are available:
business travel insurance, which generally covers specified classes of employees only while they are traveling for business purposes, and voluntary accident insurance, which covers accidents at any time and related to any activity, either personal or business.
Group term life insurance coverage typically provides a ? of the face amount of the insurance to beneficiaries at the insured employee’s death.
lump-sum payment
The annually renewable term coverage used in 90% of group term life policies has the advantages for the employer of:
being relatively easy to administer, low in cost, and tax advantaged (premiums are a deductible business expense).
Among the advantages of group term life for the employee (including the owner/employee) are:
the absence of a medical exam requirement and the tax-free nature of the first $50,000 of coverage.
Group term life coverage must be based on a formula that applies uniformly to all plan participants. Some common formulas include the following:
A percentage or multiple of earnings
An amount of coverage based on years of service
A coverage limit for different classes of employees
Group term life coverage for dependents is usually LESSER/HIGHER amount than the limits established for employees.
lesser.
Technically, to qualify as group term life under Section 79 and receive the favorable tax treatment allowed for such coverage, the life insurance provided must meet the following 4 requirements:
- The coverage must provide a general benefit.
- The coverage must be provided to a group of employees as part of their compensation for services rendered as an employee.
- The insurance policy must be provided by the employer as either a master policy or a group of individual policies.
- The amount of insurance provided to each employee must be consistent with no individual selection.
For the plan to qualify for favorable tax treatment (i.e., the employee’s $50,000 exclusion and employer’s deduction), Internal Revenue Code Section 79 requires that a group term policy furnished by the employer must:
not discriminate in favor of key employees.
An accidental death and dismemberment (AD&D) policy provides a ? due to an accident.
lump-sum benefit for loss of life or body parts
There are two types of AD&D coverage are available:
business travel insurance, which generally covers specified classes of employees only while they are traveling for business purposes, and voluntary accident insurance, which covers accidents at any time and related to any activity, either personal or business.
While group term life insurance is the most common type of group policy, the employer may choose to offer a plan that permits employees to build some ? insurance coverage.
permanent
Dividends paid on group permanent policies may be taxable to the employee if ?
a policy includes both group term life insurance coverage and permanent benefits.
With regard to group permanent policies, if the employee pays nothing toward the cost of permanent benefits, then the dividends are INCLUDIBLE/NON-INCLUDIBLE in gross income when they are actually or constructively received. If the employee pays a part of the cost of permanent benefits, then that employee’s contribution OFFSETS/DOESN’T OFFSET dollar for dollar the taxable amount.
includible; offsets
What are group paid-up policies?
a type of employer-sponsored life insurance plan that combines term life insurance with a permanent life insurance component. It allows employees to accumulate paid-up life insurance coverage over time without losing their employer-provided benefits.
Two restrictions must be noted on the use of group paid-up policies:
group paid-up policies are more costly to administer than group term policies & group paid-up coverage will be available only to employers exhibiting employment stability (low turnover and low expectation of labor disruptions).
What is a group ordinary plan?
A group ordinary (Section 79) plan offers employees the opportunity to participate in ordinary whole life insurance funded by employee and employer contributions. Whether employees choose to participate in or waive the contributory permanent coverage, they will benefit from the employer-paid term life insurance portion of the coverage. Because of earlier abuses, these plans are not common because they are subject to complex rules that require the employer to pay only the term cost; the permanent portion needs to be entirely supported by the employee.
What is a group universal life policy (GULP)?
an employer-sponsored permanent life insurance plan that combines the affordability of group coverage with the flexibility and cash value accumulation of universal life insurance.
An important advantage of the GULP plan is the ? provided.
portability
if an employee terminates or retires, the policy is usually distributed to the departing employee, who continues to pay premiums to the insurance company.
? insurance often has simplified underwriting requirements, which increases the chances of adverse selection.
group permanent life
What is group survivor income?
an employer-sponsored life insurance benefit that provides ongoing income payments to an employee’s surviving spouse or dependents if the employee passes away while covered under the plan. Instead of a lump sum death benefit, it offers regular monthly or annual payments for a predetermined period.
John Alvarado is 52 and works for NUtech.com, Inc. He is a valued employee, and the company provides him $250,000 of group term life as part of his benefits package. What is the annual tax impact of this benefit on John?
equation is: [(face amount - $50,000) / $1,000] x GL economic benefit cost per month (see figure 5.2) x 12 = imputed income for age 52.
($200,000 / $1,000) x 0.23 x 12 = $552.
The result for John is $552 of taxable income.
Group term life insurance premiums are deductible by the employer and excludable from income by the employee if the face value does not exceed ?
$50,000
There are two situations in which the cost of group term insurance above $50,000 is tax exempt:
first, for individuals who are disabled or retired, under certain conditions; and second, for individuals who have designated the employer or a charitable organization as beneficiary. In addition, the economic benefit of the full amount of insurance coverage (determined using Table 2001, supplied by the IRS) is taxable if the insurance is provided under a qualified plan.
If proceeds are payable to the employee’s designated beneficiary and the employee has vested rights in the premiums as they are paid, the cost of employer-provided permanent life insurance coverage is reported as TAXABLE/NON-TAXABLE income to the employee, based on the cost of the coverage.
taxable
Dividends from permanent insurance MAY/MAY NOT be taxable to the employee.
may
the amount taxable to the employee for the dividends actually or constructively received (and any employer-provided permanent coverage) would be offset by the employee’s contributions toward the cost of this coverage.
What requirements must a small business fulfill in order to receive a tax credit?
In order to claim the credit, the business must have no more than 25 full-time-equivalent employees (2 half-time employees equal 1 full-time employee) and pay an average wage of less than $50,000 a year. The average wage would be calculated by dividing total wages by the number of full-time-equivalent employees. The business must also cover at least 50% of the cost of single (not family) health care coverage for each employee.
Brighton Boards pays total wages of $200,000 to nine full-time employees and two part-time employees ($200,000 / 10 = an average wage of $20,000). If Brighton Boards pays $40,000 a year toward workers’ health care premiums, they would qualify for a ? credit.
$14,000
Brighton Boards can also claim a business expense deduction for premiums in excess of the credit.
What is group LTC insurance?
an employer-sponsored benefit that helps employees cover the costs of extended care services, such as nursing homes, assisted living, home health care, or adult daycare. It is designed for those who may need assistance with daily activities due to aging, illness, or disability.
Group insurance offers lower rates and people can get coverage WITH/WITHOUT providing evidence of insurability.
without
If an employer pays for LTC insurance, the premiums are tax deductible to the employer and are not taxable income to the employee. If the employee pays premiums, an ? may be used.
HSA
Normally HSA funds cannot be used to pay insurance premiums. However, long term care insurance is an exception to the rule. HSA funds may be used to purchase qualified long-term care insurance without tax penalty. (IRS Pub 969, 2022)
What is a self-funded insurance plan?
a type of health insurance in which an employer takes on the financial responsibility for providing healthcare benefits to employees instead of purchasing a traditional fully insured plan from an insurance carrier.
What is a fully insured plan?
an insurance company provides benefit coverage based on a contract between the employer and the insurance provider.
Although self-funded plans normally have both, there are two types of stop-loss, or excess-loss, coverage:
specific and aggregate. The specific stop loss pertains to an individual participant (i.e., employee or dependent) and limits the plan’s liability for any individual’s health care costs. Generally, if an individual reaches the specific stop loss, the carrier reimburses the plan for 100% of any health care costs that exceed the attachment point.
What is a cafeteria plan?
a cafeteria plan approach allows employees to participate only in those benefits they find useful. That is, the employee can pick and choose from a menu only those benefits found to be appropriate or desirable.
Section 125 requires a cafeteria plan to offer:
a cash benefit that generally is taxable to the employee as compensation, and
one or more qualified benefits that are not taxable to the employee.
Cafeteria plans are most feasible for employers with more than ? employees; however, employers with as few as ? employees have used them.
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Prohibited from cafeteria plans are educational assistance programs, LTC insurance, employee discounts, noncash fringe benefits, and commuter benefits. Only cash or ? as defined in IRC Section 125, can be offered.
“qualified benefits,”
What is a flexible spending arrangement (FSA)?
the employee commits to allocating a dollar amount of salary reduction for the coming year to a specific benefit or a specified period (“use it or lose it”). an FSA is a cafeteria plan consisting of various tax-free benefits funded through employee salary reductions.
One great advantage with FSAs is that employee deferrals into an FSA are not only free of any ? taxes (pretax dollars), but are also free of any ? (Social Security) taxes.
income; payroll
Caroline is in the 12% marginal tax bracket and has estimated her costs for prescription drugs and eyeglasses for the next year to be $2,000. She is considering opening an FSA account through her company to pay for these expenses. She can have her employer deduct $175 a month from her monthly paycheck and deposit it into the FSA. How much would she save?
The calculation is $2,000 / (1 – .12 – .0565) = $2,000 / .8235 = $2,429.
If she doesn’t open the FSA account, she would need to earn $2,429 to pay the $2,000 in estimated costs, a difference of $429! The difference is even more substantial with higher tax brackets.
This year, Walter committed to having $200 every pay period ($200 a month since Walter is paid on the 15th of each month) deposited into an FSA account. This means that Walter agreed to defer $2,400 this year. He will not pay any income or payroll taxes on this amount. In February of this year, after depositing just $400 into the FSA so far by payroll deduction, he has a major medical emergency and is out of pocket $1,500. He uses his FSA account to pay this amount, and it must be paid because the claim is within the forecasted amount of $2,400 that Walter is setting aside this year. If Walter were to leave his employer prior to having deposited a total of $1,500 into the FSA, would any shortfall come out of the employer’s pocket or Walter’s?
the employer’s.
generally, health FSAs must apply the use-or-lose rule, but in 2005, the IRS modified the rule to allow plans to provide participants an additional 2&1⁄2 months to use the money.
Employee contributions to an FSA are made on a ? basis, and as a qualified employee benefit plan, employee benefits are nontaxable.
pretax
What are health savings accounts (HSAs)?
a tax-advantaged savings account designed to help individuals with high-deductible health plans (HDHPs) save money for qualified medical expenses.
David and Mary have family HDHP coverage with a $5,000 deductible. David has no other coverage. However, Mary also has self-only coverage with a $200 deductible. Can Mary or David contribute to an HSA? If yes, how much?
Mary, who has coverage under a low-deductible plan, is not eligible and cannot contribute to an HSA. David may contribute $3,850 to an HSA.
Rudy and Lori have family HDHP coverage with a $5,000 deductible. Rudy has no other coverage. Lori also has self-only HDHP coverage with a $2,200 deductible. What is their HSA contribution limit, if any?
Both Rudy and Lori are eligible individuals. Rudy and Lori are treated as having only family coverage. The combined HSA contribution by Rudy and Lori cannot exceed $7,750, to be divided between them by agreement.
Allan and Andrea have family HDHP coverage with a $5,000 deductible. Allan has no other coverage. Andrea also has family HDHP coverage with a $3,000 deductible. What is their HSA contribution limit, if any?
Both Allan and Andrea are eligible individuals. The maximum combined HSA contribution by Allan and Andrea is $7,750, to be divided between them by agreement.
John and Diane have family HDHP coverage with a $5,000 deductible. John has no other coverage. Diane also has family coverage with a $200 deductible. What is their HSA contribution limit, if any?
John and Diane are treated as having family coverage with the lowest annual deductible ($200). Neither John nor Diane is an eligible individual, and neither may contribute to an HSA.
Elmer and Donna have family HDHP coverage with a $5,000 deductible. Elmer has no other coverage. Donna also is enrolled in Medicare. What is their HSA contribution limit, if any?
Donna is not an eligible individual and cannot contribute to an HSA. Elmer may contribute $3,850 to an HSA.
What are health reimbursement arrangements (HRAs)?
a self-insured plan funded solely by employer contributions and reimburses employees for unreimbursed medical expenses.
An HRA is designed primarily to:
limit the health plan costs of an employer.
What is an excepted benefit health reimbursement arrangement (EBHRA)?
allows employers to offer employees up to $1,950 per year (2023) for qualified medical expenses such as dental, vision, and short-term limited-duration insurance (no employee contributions allowed). These plans also do not have to comply with the Affordable Care Act if traditional group health plans are offered.
What is a qualified small employer health reimbursement arrangement (QSEHRA)?
a tax-advantaged health benefit that allows small businesses (fewer than 50 employees) to reimburse employees for medical expenses and health insurance premiums. It is an alternative to traditional group health insurance plans.
What are Voluntary Employees’ Beneficiary Associations (VEBAs)?
a tax-exempt trust under Section 501(c)(9) of the IRS Code that employers set up to provide employee benefits such as health care, life insurance, disability, and severance pay. VEBAs are commonly used by unions, government entities, and large employers to help fund employee benefits.
What is the Employee Retirement Income Security Act of 1974 (ERISA)?
a federal law that sets minimum standards for private-sector retirement and employee benefit plans to protect workers and their beneficiaries. It regulates pension plans, 401(k)s, health insurance, and other welfare benefit plans offered by employers.
Group disability plans often provide two different types of coverage based on the benefit period:
short-term disability (STD) and long-term disability (LTD).
What are sick-pay plans?
employer-sponsored benefits that provide income replacement to employees who are unable to work due to illness or injury. These plans can be funded by the employer, an insurance company, or a combination of both.
What is short-term disability (STD) coverage?
STD coverage provides income replacement beyond the period of time allowed for sick-pay benefits; this coverage usually is provided through an insurance company plan. An employee becomes eligible for STD benefits after a waiting or elimination period of one week of being totally disabled (i.e., unable to perform the normal responsibilities of their position [“own” occupation]) due to sickness. If the disability is due to an accident, benefits usually begin on the first day. However, if sick pay applies, the disability will not begin until sick pay is exhausted.
What is long-term disability (LTD) coverage?
Long-term disability benefits are scheduled to begin after a specified period of total disability (waiting period)—usually 60, 90, or 180 days. Generally, eligibility for LTD benefits during the first two years is based on the same definition of disability as for STD benefits (inability to perform their occupation). After 24 months, the total disability required for eligibility is defined as the inability to perform any occupation for which the disabled worker’s education, training, or experience might have prepared them for. This is the modified own occupation definition of disability (own occupation for two years, then any occupation).
What is workers’ compensation coverage?
a state-mandated insurance program that provides wage replacement and medical benefits to employees who are injured or become ill due to their job. In exchange, employees waive their right to sue their employer for negligence.
What is unemployment insurance?
a government program that provides temporary financial assistance to eligible workers who lose their jobs through no fault of their own. It is designed to help individuals cover essential expenses while they search for new employment.
What are fringe benefits?
non-wage compensations that employers offer to employees in addition to their regular salary. These benefits can be mandatory (required by law) or voluntary (offered as perks to attract and retain talent).
What are prepaid legal services?
a fringe benefit that makes legal services available to employees.
Generally, which of the following is true for the premiums on group term life insurance paid by an employer?
A. Premiums are tax deductible by the employer and the employee.
B. Premiums are tax deductible by the employer and represent a tax liability to the employee.
C. Premiums may be tax deductible by the employer and not taxable to the employee.
D. Premiums are not tax deductible by either the employee or the employer.
C. Premiums may be tax deductible by the employer and not taxable to the employee.
Explanation: The payments are deductible by the employer if the plan is nondiscriminatory (does not discriminate in favor of key employees). In addition, the employee can exclude the cost of up to $50,000 of coverage from compensation (W-2) income.
John is a key employee. He receives group term life insurance for four times his base salary of $225,000 from the company, while rank-and-file employees receive only the amount of their base salary. What portion of the premiums on his group term life coverage must he include in his taxable compensation income for the year?
A. The premiums on $50,000
B. The premiums on $225,000
C. The premiums on $450,000
D. The premiums on $900,000
D. The premiums on $900,000
Explanation: John is a key employee, and the group term life insurance plan discriminates on his behalf. Therefore, he must include the entire amount of the group term life insurance premium paid by the company as taxable compensation.
David is covered by a $210,000 group term life insurance policy. His employer pays the entire cost of the policy. The cost of $1,000 of protection per month from Table I for David’s age is $0.06. What amount of the annual premium is taxable to David as compensation (W-2) income?
A. $0
B. $48
C. $115.20
D. $151.20
C. $115.20
Explanation: The cost of the first $50,000 of coverage under a group term life policy is nontaxable to David. The remainder of the cost of coverage ($160,000) is taxable as compensation (W-2) income. Therefore, [($160,000 × $0.06) ÷ 1,000] × 12 = $115.20 is taxable income.
Which statement regarding group LTC insurance is NOT correct?
A. Employers may offer group LTC insurance as an employee benefit.
B. Group LTC policies are similar to high-end individual LTC policies in terms of coverage and benefits.
C. Generally, group LTC policies are more expensive than individual LTC policies.
D. After an employee’s termination, LTC coverage may be continued on a direct-pay basis.
C. Generally, group LTC policies are more expensive than individual LTC policies.
Explanation: Generally, group LTC policies are less expensive than individual LTC policies.
Health insurance premiums paid by the employer through an employer-paid group plan are:
A. a deductible business expense to the employer, and the benefits are included in the employees’ gross incomes.
B. a deductible business expense to the employer, and the benefits are not included in the employees’ gross incomes.
C. a nondeductible business expense to the employer, and the benefits are included in the employees’ gross incomes.
D. a nondeductible business expense to the employer, and the benefits are not included in the employees’ gross incomes.
B. a deductible business expense to the employer, and the benefits are not included in the employees’ gross incomes.
Explanation: Health insurance premiums are a deductible business expense to the employer, and the benefits are not included in the employees’ gross incomes.
Income from a Voluntary Employees’ Benefit Association (VEBA) is:
A. exempt from regular income tax if certain requirements are met.
B. always exempt from regular income tax.
C. subject to capital gains taxes.
D. considered unrelated business income.
A. exempt from regular income tax if certain requirements are met.
Explanation: A VEBA is a type of organization (trust or corporation) established by an employer or through a collective bargaining agreement to hold funds used to pay benefits under an employee benefit plan. Income is exempt from regular income tax if the VEBA meets the requirements of Section 501(c)(9). Unrelated business income is income from a trade or business that is not substantially related to a nonprofit organization’s tax-exempt purpose and that is regularly carried on by the organization.
In which of these circumstances is the implementation of a cafeteria plan appropriate?
I. When employee benefit needs vary within the employee group
II. When employees want to choose the benefits package most suited to their individual needs
III. When some employees prefer to receive cash in lieu of noncash benefits of equal value
A. III only
B. I and II
C. II and III
D. I, II, and III
D. I, II, and III
Explanation: A cafeteria plan is appropriate when employee benefit needs vary and employees want to choose the benefits package most suited to their individual needs. A cafeteria plan must allow employees to elect a cash option in lieu of noncash benefits of equal value.
Which statement describing the features of an HSA is CORRECT?
A. Contributions are not tax deductible.
B. A person can establish an HSA regardless of age.
C. Distributions used to pay qualified medical expenses are tax free.
D. A person can establish an HSA regardless of the type of existing health coverage in force.
C. Distributions used to pay qualified medical expenses are tax free.
Explanation: Distributions from an HSA are tax free if used to pay qualified medical expenses. Contributions are tax deductible. A person who has reached age 65 can no longer establish an HSA, and a person must be covered by an HDHP to be eligible for an HSA.
All of the following statements about an HSA are correct EXCEPT:
A. contributions to an HSA are not tax deductible.
B. inside the HSA, earnings are tax deferred.
C. HSA distributions are tax free if used to pay for qualified medical expenses.
D. individuals are eligible for an HSA if they cannot be claimed as a dependent on another person’s tax return.
A. contributions to an HSA are not tax deductible.
Explanation: Contributions to an HSA are tax deductible.
Self-employed persons are allowed to deduct what percentage of the amount they pay for health insurance?
A. 25%
B. 50%
C. 75%
D. 100%
D. 100%
Explanation: Self-employed persons are allowed to deduct 100% of what they pay for health insurance (including qualified long-term care insurance) from their gross income.
All of the following statements regarding a group disability policy are correct EXCEPT:
A. group disability plans often provide long-term disability only.
B. benefits are often less in group policies, which accounts for the lower cost.
C. a group disability policy is less expensive than an individual policy because the risk is spread over more participants.
D. group plans often state the benefit amount as a percentage of the employee’s compensation, while individual plans pay a specific dollar amount.
A. group disability plans often provide long-term disability only.
Explanation: Group disability plans often provide two different types of coverage based on the benefit period: short-term disability (STD) and long-term disability (LTD).
Which of the following classes of benefits are payable to injured workers or their dependents under the workers’ compensation laws?
I. Medical expenses
II. Survivors death benefits
III. Total permanent disability
IV. Partial temporary disability
A. I and II
B. I and III
C. III and IV
D. I, II, III, and IV
D. I, II, III, and IV
Explanation: Medical expenses, which account for about a third of all benefits paid under workers’ compensation, are payable. Survivors death benefits are generally paid as a weekly sum for a surviving spouse for life or until remarriage, without a dollar limit, depending upon the state involved. Being disabled totally and permanently is also covered. Benefits are payable for someone who is only partially disabled and typically unable to pursue their own occupation but is able to engage in some other type of work.
Which of the following statements regarding dental expense insurance is correct?
I. Coverage is generally provided for dental including cleanings, fillings, crowns, and oral surgery.
II. Many dental expense plans are offered through indemnity plans.
A. I only
B. II only
C. Both I and II
D. Neither I nor II
D. Neither I nor II
Explanation: Dental coverage typically includes cleanings, fillings, crowns, and orthodontics. Oral surgery is generally covered under health insurance plans. Today, many dental plans are offered through PPOs.
Which of the following statements regarding LTC is correct?
I. There is no evidence of insurability required for group LTC insurance.
II. It is more expensive if an employer customizes the group LTC insurance for each employee.
A. I only
B. II only
C. Both I and II
D. Neither I nor II
A. I only
Explanation: Employers cannot tailor group LTC coverage to each employee. This is an advantage of individual LTC over group LTC plans.
FSAs may provide funds to pay all of these except:
A. Deductibles on group health insurance policies.
B. Coinsurance provisions on group health policies.
C. Self-employed person’s health insurance deductibles.
D. Dependent care expenses.
C. Self-employed person’s health insurance deductibles.
Explanation: A self-employed person is not eligible for an FSA.
Which of the following about most group life insurance plans sponsored by an employer is true?
A. They are considered nonqualified plans.
B. They are required to meet ERISA’s reporting, disclosure, and fiduciary responsibility provisions.
C. Including church and government employers, they are subject to the ERISA plan termination insurance provisions.
D. They are subject to the participation and vesting requirements of the Employee Retirement Act of 1974 (ERISA).
B. They are required to meet ERISA’s reporting, disclosure, and fiduciary responsibility provisions.
Which of these statements regarding group disability insurance is CORRECT?
A. Group policies are usually offered with riders.
B. Most policies provide an own occupation definition of disability to age 65.
C. A group policy often has a stringent long-term definition of disability than an own occupation individual policy.
D. Group policies are usually issued after asking the individuals in the group health-related questions.
C. A group policy often has a stringent long-term definition of disability than an own occupation individual policy.
Which of these is statements regarding unemployment insurance is correct?
A. Unemployment insurance is paid for under the FICA tax shared by employers and employees.
B. Voluntary unemployment receives the same benefits as involuntary unemployment.
C. To be eligible to receive benefits, the worker must have had unemployment taxes paid on his or her behalf.
D. A worker can anticipate benefits to be approximately 75% of his or her normal full-time earnings and typically are paid for 46 weeks.
C. To be eligible to receive benefits, the worker must have had unemployment taxes paid on his or her behalf.
