In: Accounting
6.If you were involved in a multicar accident where tort law applied, a lawsuit between the parties likely would result. The suit would be an attempt to place blame for the accident, thereby also placing financial responsibility for the losses incurred. Under the no-fault concept:
Select one:
a. the party who is driving under influence would have to bear all damages.
b. each injured party would bear their injury costs, since the insurance company would not get involved to avoid legal battles.
c. each injured party would receive compensation from the insurance company of the party who cause the injury.
d. the insurance company of the party at fault would have to compensate for all injured parties.
e. each injured party would receive compensation from his or her own insurance company.
7.This benefit is paid to the spouse living with the worker at the time of death, or a spouse otherwise entitled, or children entitled of a fully or currently insured worker. It has not increased since the Social Security legislation was passed in 1935. Identify this benefit.
Select one:
a. Lump-sum death benefit
b. Early retirement benefit
c. Health benefit
d. Late retirement benefit
e. Disability benefit
8.Which of the following is true about disability benefits in Social Security?
Select one:
a. A blind person can earn upto $2,500 and still be eligible for these benefits.
b. Threshold amounts allowed to earn to receive benefits for the blind are indexed annually to increases in the national wage index.
c. These benefits cannot be stopped even if the disabled worker refuses to participate in rehabilitation.
d. A nonblind person earning more than $580 in 2009 is not eligible for Social Security benefits.
e. They have a waiting period of one year.
9.Identify the characteristics of a hard market.
Select one:
a. Insurance rates and insurance capacity are high
b. Insurance rates and insurance capacity are low
c. Insurance rates are low and insurance capacity is high
d. Insurance rates are negligible and insurance capacity is very high
e. Insurance rates are high and insurance capacity is low
10.An individual work full-time for salary but part-time as an accountant in the evenings and on weekends. Which of the following plans is suitable if this employee wants to establish a plan based on self-employment earned income?
Select one:
a. Unit benefit plan
b. Money purchase plan
c. Cash balance plan
d. Keogh plans
e. Target plan
6. Under the no-fault concept: each injured party would receive compensation from his or her own insurance company.
Answer is e. each injured party would receive compensation from his or her own insurance company.
7. Lump-sum death benefit is paid to the spouse living with the worker at the time of death, or a spouse otherwise entitled, or children entitled of a fully or currently insured worker.
Answer is a. Lump-sum death benefit
8. The statement which is true about disability benefits in Social Security is: Threshold amounts allowed to earn to receive benefits for the blind are indexed annually to increases in the national wage index.
Answer is b. Threshold amounts allowed to earn to receive benefits for the blind are indexed annually to increases in the national wage index.
9. The characteristics of a hard market is: Insurance rates are high and insurance capacity is low
Answer is e. Insurance rates are high and insurance capacity is low
10. Keogh plans is suitable if this employee wants to establish a plan based on self-employment earned income.
Answer is d. Keogh plans
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