Ch. 6 Markets & Social Security Quiz

What is the purpose of group life insurance?

• To underwrite the combine risk of a group of individuals as a single policy

• To provide coverage for individuals with high income

• To cover only the employees of a specific company

• To offer discounted rates for healthy individuals

What is the minimum number of quarters required to be fully insured under Social Security?

• 6 quarters

• 10 quarters

• 4 quarters

• 8 quarters

What is the purpose of a Buy-Sell Agreement in a business?

• To offer disability income benefits to key employees

• To provide retirement benefits for employees

• To provide health insurance coverage for all employees

• To establish a price for the purchase of assets in the event of a participant's death

What is the main purpose of Key Person life insurance?

• To provide funds for the continuation of the business in the event of a key employee's death

• To provide disability income benefits for key employees

• To provide retirement benefits for key employees

• To offer health insurance coverage for key employees

What is the funding source for the Social Security system?

• Sales Tax

• Federal Insurance Contributions Act (FICA) tax

• State Income Tax

• Federal Income Tax

What is the minimum age to receive reduced retirement benefits under Social Security?

• 67

• 65

• 62

• 60

What is the Survivor Benefit based on?

• The age of the surviving spouse

• The length of the marriage

• The Primary Insurance Amount (PIA) of the deceased

• The number of children in the family

What is the purpose of a Split-Dollar Plan?

• To provide a benefit for the employee's family upon the employee's death

• To offer retirement benefits for employees

• To provide health insurance coverage for all employees

• To provide disability income benefits for employees

What is the main purpose of a Deferred Compensation plan?

• To offer health insurance coverage for all employees

• To provide disability income benefits for employees

• To provide funds for the continuation of the business in the event of a key employee's death

• To provide additional retirement income to key employees

What is the main purpose of a Multiple-Employer Trust (MET) in the group insurance market?

• To offer discounted rates for healthy individuals

• To provide coverage for a single employer's employees

• To cover only the employees of a specific industry

• To allow small employers to join and become eligible for group insurance