1. "Golden parachute" agreements may include all of the following, except
2.
3. cash.
4. company stock.
5. medical and life insurance.
6. reduced pension benefits. - ANS-reduced pension benefits.
7.
8. Golden parachute agreements may include various combinations of cash, company
stock, medical and life insurance, extra pension benefits, and other benefits.
9. A standardized Medigap plan is designed to cover - ANS-Medicare-approved charges
that are not paid by Medicare.
10.
11. Medigap insurance is designed to supplement Medicare's benefits by filling in some of
what Medicare does not cover, such as deductibles and coinsurance; it covers only
Medicare-approved charges. Standardized Medigap plans pay only for long-term care
while the beneficiary qualifies for benefits from Medicare, and is limited to paying the
coinsurance from the 21st through 100th days.
12. All of the following apply to voluntary early retirement programs except
13.
14. they rarely result in lawsuits against the companies offering the programs.
15.
16. they provide a set of incentives to reduce corporate headcount.
17.
18. they present pluses and minuses for the eligible employee.
19.
20. they should be analyzed based on their future value. - ANS-they should be analyzed
based on their future value.
21.
22. Voluntary early retirement incentives provide a set of incentives to reduce corporate
headcount. They present pluses and minuses for the eligible employee that should be
evaluated based on their net present value. Such arrangements rarely result in lawsuits
because employees select themselves for termination. They should be analyzed based
on their present value.
23. All of the following apply to voluntary early retirement programs except
24.
25. they rarely result in lawsuits against the companies offering the programs.
26.
27. they provide a set of incentives to reduce corporate headcount.
28.
,29. they present pluses and minuses for the eligible employee.
30.
31. they should be analyzed based on their future value. - ANS-they should be analyzed
based on their future value.
32.
33. Voluntary early retirement incentives provide a set of incentives to reduce corporate
headcount. They present pluses and minuses for the eligible employee that should be
evaluated based on their net present value. Such arrangements rarely result in lawsuits
because employees select themselves for termination. They should be analyzed based
on their present value.
34. All of the following are correct about the surrender charges associated with an annuity,
except
35.
36. -a typical surrender charge period is four to nine years.
37.
38. -surrender charges are a way for the insurance company to recoup expenses associated
with the establishment of the contract.
39.
40. -surrender charges are a way for the insurance company to recoup expenses associated
with the cost of the contract guarantees.
41.
42. -surrender charges are typically a flat dollar amount that is applied over the life of the
contract. - ANS-surrender charges are typically a flat dollar amount that is applied over
the life of the contract.
43.
44. Surrender charges are typically a percentage of the principal, most often starting at a
higher percentage and declining over time.
45. All of the following are true about the deductibles that apply to health insurance except
46.
47. health insurance deductibles apply per incident.
48.
49. a deductible is the amount that the insured must pay before the plan pays anything.
50.
51. the deductible for catastrophic and bronze plans will be larger than for gold or platinum
plans.
52.
53. deductibles do not apply to many forms of preventive care. - ANS-health insurance
deductibles apply per incident.
54.
55. Unlike a homeowners or automobile policy, a health insurance deductible is an annual
amount, not a per incident amount. Preventive care and wellness benefits, such as
mammograms and well-baby care, are often paid 100% by the insurance company
without a required deductible.
, 56. All of the following are true regarding COBRA-mandated continuation of group medical
coverage for terminated employees except
57.
58. proof of insurability is required.
59.
60. continued coverage must be made available for at least 18 months.
61.
62. the terminated employee must pay full premiums including up to a 2% increase. -
ANS-proof of insurability is required.
63.
64. COBRA requires employers to provide continued group medical coverage without proof
of insurability. Continued coverage must be made available for at least 18 months, and
for up to 36 months in certain circumstances. Terminated employees are required to pay
full premiums and up to a 2% administrative cost.
65. All of the following are true regarding living wills except
66.
67.
68. they must be signed.
69.
70. they must be witnessed by people who are not heirs of the maker.
71.
72. they allow the maker to dictate what life-sustaining measures may be taken if the maker
becomes incapable of consenting to treatment.
73.
74. they apply to routine illnesses. - ANS-they apply to routine illnesses.
75.
76. Living wills apply only when the maker has a terminal illness and death is imminent.
77. All of the following are true regarding Medicare Advantage plans except
78.
79.
80. individuals with end-stage renal disease (ESRD) are not eligible.
81.
82. beneficiaries must live in the service area of a health plan.
83.
84. to qualify, the beneficiary normally must be covered by Medicare Part A. Coverage for
Part B is optional.
85.
86. Medigap plans are available to help with the out-of-pocket costs Medicare Advantage
plans leave to individuals. - ANS-to qualify, the beneficiary normally must be covered by
Medicare Part A. Coverage for Part B is optional.
87.
88. To qualify, beneficiaries normally must be covered by parts A and B of Medicare and live
in the plan's service area. Individuals with ESRD are not eligible for Medicare Advantage
Plans; however, ESRD beneficiaries currently in a Medicare health plan can remain in
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