Benefits Training Day 4
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Please refer to the "Exercise for Mastery Homework" Word Doc in the Day 1 folder in Box for directions on completing the homework assignment. All screen shots should be attached to that Word doc and turned in at the very end of the 2 week training period.https://infinisource.box.com/s/ekngnn4qkp2ubrd2dv9h
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LTD/STD Benefit Plan Setup
This certification test contains questions of different formats. The format of the questions include multiple choice; true/false and fill in the blank etc. . . Please remember to chose the best response to each question. You are able to use your notes and participation guide along with the See moreISolved system while taking the test. Read carefully. In order to obtain your certification, you must score a passing score of 75 percent. Good Luck!
Quiz Preview
- 2.
Please choose the incorrect statement about disability plans:
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Can base covered benefit on incremental choice of the EE.
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They are usually based on salary.
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Disability plans can be age banded or flat rates.
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Must always be 100% ER paid.
Correct Answer
A. Must always be 100% ER paid.Explanation
The incorrect statement about disability plans is that they must always be 100% employer (ER) paid. Disability plans can have different funding arrangements, including being partially or fully employee (EE) paid.Rate this question:
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- 3.
The difference between calculating on Covered Benefit vs. Straight Salary is:
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You do not use a rate multiplier with the Covered Benefit calculation.
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The Straight Salary calculation does not reduce the monthly amount by the Covered Benefit percentage.
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None. There is no difference.
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Simple. Decide yourself which way it should be calculated.
Correct Answer
A. The Straight Salary calculation does not reduce the monthly amount by the Covered Benefit percentage.Explanation
The correct answer explains that the difference between calculating on Covered Benefit vs. Straight Salary is that the Straight Salary calculation does not reduce the monthly amount by the Covered Benefit percentage. This means that when using the Straight Salary calculation, the monthly amount remains unaffected by the Covered Benefit percentage.Rate this question:
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- 4.
Although you might be tempted to leave fields blank, you shouldn’t because:
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The client might decide to use eBN or COBRA someday.
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These blank columns will show nothing in a report if pulled.
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Some things won’t calculate if you leave them blank.
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All of the above.
Correct Answer
A. All of the above.Explanation
Leaving fields blank can have several negative consequences. First, the client might choose to use eBN or COBRA in the future, and leaving fields blank now could cause issues later on. Additionally, if blank columns are included in a report, they will display as empty, providing no useful information. Finally, certain calculations may not be possible if fields are left blank, potentially leading to errors or inaccuracies. Therefore, it is important to not leave fields blank to avoid these potential problems.Rate this question:
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- 5.
Cost Bands may use:
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Any combination of Tobacco, Gender and Employee Age options.
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Only the Tobacco or Age options.
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Only the Tobacco or Gender option along with the Age options.
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None of the above.
Correct Answer
A. Any combination of Tobacco, Gender and Employee Age options.Explanation
The correct answer is any combination of Tobacco, Gender, and Employee Age options. This means that Cost Bands can use any combination of these three options to determine the cost of insurance. They can consider the use of Tobacco, Gender, and Employee Age individually or in combination with each other. This gives them flexibility in setting insurance costs based on different factors that may affect the risk profile of the insured individuals.Rate this question:
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- 6.
In the Company Provided Insurance section on the Insurance Rates Tab, you are provided with multiple options for Salary. How do you know which one to use?
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You need to consider whether or not the client has eBN.
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You need to know when the client sends salary updates to the carrier.
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You use the nifty, handy chart created for you.
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All of the above.
Correct Answer
A. All of the above.Explanation
The correct answer is "All of the above." This means that in order to determine which salary option to use in the Company Provided Insurance section, you need to consider whether or not the client has eBN, know when the client sends salary updates to the carrier, and use the nifty, handy chart created for you. All of these factors are important in making the correct selection for the salary option.Rate this question:
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- 7.
An LTD or STD Buy up plan:
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Is 100% ER Paid
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Always uses incremental additional coverage.
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Must be a separate plan and have separate Company Benefit Type as the regular LTD or STD plan.
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Must be a separate plan and use the same Company Benefit Type as the regular LTD or STD plan.
Correct Answer
A. Must be a separate plan and have separate Company Benefit Type as the regular LTD or STD plan.Explanation
The correct answer is "Must be a separate plan and have separate Company Benefit Type as the regular LTD or STD plan." This means that an LTD or STD Buy up plan cannot be combined with the regular LTD or STD plan. It must be a separate plan with its own distinct Company Benefit Type. This ensures that the additional coverage provided by the Buy up plan is clearly distinguished from the regular plan and does not overlap or interfere with its benefits.Rate this question:
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- 8.
You must use the algebraic formula to increase the max coverage amount if, and only if:
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The plan is calculated on straight salary.
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The stated max is below $5,000.00 for LTD and $500.00 for STD.
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The client is using eBN services.
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The max coverage is not provided to you.
Correct Answer
A. The plan is calculated on straight salary.Explanation
The correct answer is "The plan is calculated on straight salary." This means that if the plan is based solely on an employee's salary, then the algebraic formula can be used to increase the maximum coverage amount. This suggests that the formula takes into account the employee's salary in order to determine the maximum coverage amount.Rate this question:
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- 9.
Which of the following will ALWAYS be used when creating an LTD or STD plan:
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Guaranteed Issue.
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Unit Value
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Additional Amount Increment
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Age Reduction Rules
Correct Answer
A. Unit ValueExplanation
Unit Value will always be used when creating an LTD or STD plan. Unit Value is a measure of the benefit amount provided by the plan, typically based on the employee's salary or a fixed dollar amount. It helps determine the coverage amount and is used to calculate the benefits payable in case of disability or illness. Unit Value ensures consistency and fairness in benefit calculations across different employees and plans.Rate this question:
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- 10.
The Underwriting section applies to New Hires and the Guaranteed issue section applies to Open Enrollment.
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True
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False
Correct Answer
A. TrueExplanation
The underwriting section is specifically designed for new hires, meaning it applies to individuals who are newly joining the company. On the other hand, the guaranteed issue section is applicable during the open enrollment period, which is a specific time frame when individuals can enroll in or make changes to their insurance coverage without having to provide evidence of insurability. Therefore, the statement that the underwriting section applies to new hires and the guaranteed issue section applies to open enrollment is true.Rate this question:
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- 11.
You can change the Cost Band options, after you have saved, them with no consequences.
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True
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False
Correct Answer
A. FalseExplanation
Changing the Cost Band options after saving them does have consequences.Rate this question:
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- 12.
The best reason for leaving the Default EE and ER Monthly rates fields blank when you use cost bands is so you realize cost bands are being used.
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True
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False
Correct Answer
A. TrueExplanation
Leaving the Default EE and ER Monthly rates fields blank when using cost bands allows you to easily recognize that cost bands are being utilized. By leaving these fields empty, it becomes evident that the cost of the plan is determined based on the cost bands rather than specific monthly rates. This helps to avoid confusion and ensures that the cost bands are accurately applied to determine the cost of the plan.Rate this question:
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- 13.
You need to create a special coverage code for LTD and STD plans.
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True
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False
Correct Answer
A. FalseExplanation
The statement says that you need to create a special coverage code for LTD and STD plans. The answer is false because the statement is incorrect. It does not specify whether you need to create a special coverage code or not. Therefore, the correct answer cannot be determined from the given information.Rate this question:
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- 14.
If the Minimum Coverage amount for the plan is not given, simply use the incremental value or the unit value as the minimum coverage cannot be less than these anyway.
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True
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False
Correct Answer
A. TrueExplanation
The given statement is true because if the minimum coverage amount for a plan is not provided, it is logical to use either the incremental value or the unit value as the minimum coverage cannot be less than these. This ensures that the minimum coverage meets the required criteria and avoids any ambiguity or confusion.Rate this question:
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- 15.
The usual unit value for LTD is usually set at 100.
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True
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False
Correct Answer
A. TrueExplanation
The usual unit value for LTD is set at 100 because it is a commonly used benchmark for measuring long-term debt. This value allows for easier comparison and analysis of different companies' debt levels. Additionally, using a consistent unit value helps to standardize financial reporting and make it more meaningful for investors and analysts.Rate this question:
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- 16.
The usual unit value for STD is usually set at 100.
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True
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False
Correct Answer
A. FalseExplanation
The statement is false because the usual unit value for STD (standard deviation) is not usually set at 100. The unit value for standard deviation can vary depending on the context and the specific data being analyzed. It is a measure of how spread out the values in a data set are and is not typically standardized to a specific value like 100.Rate this question:
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- 17.
LTDs are usually based on Monthly Salary/Monthly Covered Benefit.
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True
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False
Correct Answer
A. TrueExplanation
LTDs, which stands for Long-Term Disability plans, are typically based on an individual's monthly salary or monthly covered benefit. This means that the amount of disability benefits received under an LTD plan is usually calculated based on a percentage of the individual's monthly salary or covered benefit amount. Therefore, the statement "LTDs are usually based on Monthly Salary/Monthly Covered Benefit" is true.Rate this question:
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- 18.
STDs are usually based on Monthly Salary/Monthly Covered Benefit.
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True
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False
Correct Answer
A. FalseExplanation
STDs, or short-term disabilities, are not usually based on monthly salary or monthly covered benefit. Instead, they are typically based on a percentage of an individual's pre-disability earnings. This means that the amount of benefits received during a short-term disability period is determined by the person's income prior to becoming disabled, rather than a fixed monthly salary or covered benefit amount. Therefore, the given statement is false.Rate this question:
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Quiz Review Timeline (Updated): Mar 21, 2023 +
Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
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Current Version
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Mar 21, 2023Quiz Edited by
ProProfs Editorial Team -
Dec 10, 2014Quiz Created by
Joan Olejniczak
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