Test 1-33

Question 1

Provider network contracts of an administrative services only (ASO) agreement for a self-funded health plan allow a limited time period for recovering claims that were identified as overpaid. This period is usually:

Answer 1

1-year

Question 2

A pension plan investment carries an expense of 2%. If the expenses are decreased by 50 basis points, what will be the new level of expenses?

Answer 2

1.50%

Question 3

At a minimum, if there have been no material changes in the plan, the Employee Retirement Income Security Act requires employers to prepare and distribute new Summary Plan Descriptions to participants at least every:

Answer 3

10-years

Question 4

Which of the following statements best describes whether the attorney-client privilege is applicable in the area of employee benefits plans?

Answer 4

As a general rule, it applies; however, courts have increasingly recognized that an exception may exist in communications involving fiduciary activities.

Question 5

A global trend taking place in defined contribution retirement plans is:

Answer 5

Greater reliance on plans with default investments

Question 6

One of the basic disclosure documents required by the Employee Retirement Income Security Act is the Summary of Benefits and Coverage. It must be presented in a uniform format and cannot exceed how many double-sided pages?

Answer 6

4

Question 7

Which of the following statements regarding the procedures required to establish an Employee Retirement Income Security Act (ERISA) employee welfare benefit plan is correct?

Answer 7

No particular formalities are required to create an ERISA plan.

Question 8

A social security totalization agreement might be involved when an employee takes an international assignment. Which of the following statements best describes the purpose of this type of agreement?

Answer 8

The agreement provides relief from dual social security coverage and taxation under both systems and integrates or synchronizes the benefits earned under more than one system.

Question 9

Which of the following is a Supreme Court case that made it difficult to argue that an Employee Retirement Income Security Act plan should not have a contractual limitations period if certain requirements are m

Answer 9

Heimeshoff v. Hartford Life & Accident Insurance Company

Question 10

When an employee takes an international assignment, the employee might be given “tax protection.” This practice refers to which of the following?

Answer 10

Reimbursing the employee only in the event he or she pays higher taxes as a result of the international assignment

Question 11

The cost of an administrative claims audit in a self-funded health plan typically will be:

Answer 11

Less than 1% of total annual claim spending

Question 12

What is the best description of the coverage provided by “Medigap” insurance policies?

Answer 12

Medigap covers health care service charges, such as copayments, coinsurance and deductibles, not covered by Medicare Parts A and B.

Question 13

Which of the following is a group that has been explicitly identified as being vulnerable to significant litigation risk when employer securities are part of a retirement plan’s investment portfolio

Answer 13

Plan Fiduciaries

Question 14

A person’s Social Security primary insurance amount (PIA) is which of the following?

Answer 14

The worker’s monthly retirement benefit at full retirement age

Question 15

Leaders in the data analytics industry developed a Healthcare Analytics Adoption Model that has a number of levels of analytics adoption that an organization passes through as it gains sophistication in using its data to drive improvement. In this model, what is the highest level of sophistication?

Answer 15

Personalized medicine and prescriptive analytics

Question 16

Hospice care benefits available under Medicare are for terminally ill persons who have a life expectancy of how many months or less?

Answer 16

6-months

Question 17

Under federal law, the value of benefits provided to an employee’s same sex civil union partner:

Answer 17

Is not exempt from federal income tax

Question 18

Approximately how many individuals are working in occupations covered by Social Security?

Answer 18

9 of 10 workers

Question 19

A recent Department of Labor audit quality study showed the percentage of employee benefit plan audits that had “Unacceptable-Major” deficiencies that adversely affected overall audit quality. This percentage was approximately:

Answer 19

40%

Question 20

What is the highest rate at which Social Security benefits can be taxed, depending on the person’s income and tax bracket?

Answer 20

85%

Question 21

How much are the civil penalties imposed by the Employee Retirement Income Security Act against certified public accounting (CPA) firms that perform deficient plan audits?

Answer 21

Zero

Question 22

Form 5500 and other financial reports statutorily must be kept for a minimum of how many years after the filing date?

Answer 22

6

Question 23

Skilled nursing facility benefits under Medicare Part A are provided only if the beneficiary has had a hospitalization of at least how many days?

Answer 23

3-days

Question 24

What was the effect of the U.S. Supreme Court ruling in Tibble v. Edison?

Answer 24

The failure to properly monitor an investment fund once selected would be exposed to fiduciary breach claims for six years from the date of such monitoring failure.

Question 25

Which of the following types of benefits may not be offered in a cafeteria plan?

Answer 25

403(b) elective deferrals

Question 26

Group health plans that provide dependent coverage must continue to make such coverage available to an adult child up to the age of 26. Which of the following statements regarding this coverage is correct?

Answer 26

This coverage must be available even if the child is married.

Question 27

The Federal Trade Commission (FTC) case against a medical transcription services company dealt with the exposure of personal medical information. According to the FTC, the settlement in this case demonstrated:

Answer 27

That companies must be held to high standards with regard to third-party vendor management and oversight when it involves personal information

Question 28

An initial Summary Plan Description must be distributed to participants within how many days after the date the plan becomes subject to Employee Retirement Income Security Act (ERISA) disclosure requirements?

Answer 28

120

Question 29

The maximum premium that can be paid for a qualified longevity annuity contract is the lesser of an indexed statutory amount ($125,000 in 2017) or:

Answer 29

25% of a participant’s aggregate account balance

Question 30

Generally, under best practice standards, how often should an Employee Retirement Income Security Act investment committee meet?

Answer 30

quarterly or twice a year

Question 31

Plan fiduciaries must understand the core difference between “active” and “passive” investment strategies. Which of the following statements best describes this difference?

Answer 31

Passive funds typically seek to match the performance of an index of securities, while active funds attempt to outperform the market.

Question 32

Which of the following statements regarding the ways in which the U.S. health care system is different from health care systems in other countries is correct?

Answer 32

The U.S. is the only large economy in the world that does not offer its citizens universal access to medical care.