Social Insurance

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Question 1
Free
Multiple Choice

Which of the following is a reason that social insurance programs exist?

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A

to compete with private insurance programs

B

to provide a base of economic security

C

to provide needs-tested benefits to low-income individuals

D

to reduce involvement of the government in insurance markets

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Question 2
Free
Multiple Choice

Which of the following statements about the characteristics of social insurance programs is true?

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A

Benefits are loosely related to a worker's earnings.

B

Benefits are paid primarily on the basis of individual equity.

C

Participation in social insurance programs is voluntary.

D

Social insurance programs must be fully funded at all times to pay required benefits.

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Question 3
Free
Multiple Choice

Which of the following statements about the characteristics of social insurance programs is true?

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A

They are designed to provide a floor of income with respect to the risks that are covered.

B

Social insurance benefits payments are unrelated to income.

C

Participants are required to satisfy a means test to receive benefits.

D

With few exceptions, participation in social insurance programs is voluntary.

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Question 4
Free
Multiple Choice

Which of the following statements about participation in the Social Security program is (are) true?
I)Most private sector employees are covered under the Social Security program.
II)Each employee has the right to "opt out" of the Social Security program if the employee does not wish to participate in the program.

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A

I only

B

II only

C

both I and II

D

neither I nor II

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Question 5
Free
Multiple Choice

One insured status under Social Security requires you to have earned at least six credits during the last 13 calendar quarters ending with the quarter of death, disability, or entitlement to retirement benefits. This insured status is

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A

disability insured.

B

temporarily insured.

C

fully insured.

D

currently insured.

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Question 6
Multiple Choice

As of this year, Brad, age 50, has 40 credits under the Social Security program. These credits were all earned in the last 10 years. What is Brad's insured status under the program?

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A
He is currently and fully insured.
B
He is currently insured, but not fully insured.
C
He is fully insured, but not currently insured.
D
He is neither currently insured nor fully insured.
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Question 7
Multiple Choice

Which of the following statements about the full retirement age under the Social Security program is true?

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A
The current retirement age for full benefits is age 62.
B
Beginning in the year 2025, the retirement age will be gradually increased to age 75.
C
Early retirement with reduced benefits is allowed as early as age 55.
D
Delayed retirement beyond the age for full benefits increases the amount of the monthly benefit.
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Question 8
Multiple Choice

All of the following persons are eligible for a benefit under the retirement portion of the Social Security program EXCEPT

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A
a divorced spouse, age 55, who was married to the retired worker for 6 years.
B
a retired worker's 63 year-old spouse who is no longer caring for children.
C
a retired worker's 52 year-old spouse who is caring for a 12 year-old daughter of the retired worker.
D
a retired worker's unmarried 20 year-old son who has been severely disabled because of an automobile accident while he was in elementary school.
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Question 9
Multiple Choice

Which of the following statements is (are) true with respect to the Social Security earnings test?
I)The earnings test does not apply to dividends, interest, and rental income.
II)The earnings test does not apply to work earnings for those individuals who have reached the full retirement age under Social Security.

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A
I only
B
II only
C
both I and II
D
neither I nor II
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Question 10
Multiple Choice

All of the following persons are eligible for survivor benefits under Social Security EXCEPT

Choose correct answer/s
A
dependent parents age 62 or older.
B
a surviving brother or sister, age 60 or older.
C
a surviving spouse age 60 or older.
D
a surviving spouse with eligible children younger than age 16.
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Question 11
Multiple Choice

Which of the following statements about disability benefits under Social Security is true?

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A
There is a one-year waiting period before benefits are payable.
B
Benefits are payable as long as the disabled worker is unable to perform his or her regular occupation.
C
Benefits are payable only if the condition causing the disability is expected to result in death prior to age 65.
D
In addition to the disabled worker receiving the benefits, benefits can also be paid to eligible dependents.
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Question 12
Multiple Choice

In addition to most persons over age 65, which of the following persons is (are) eligible for Medicare benefits?
I)Persons under age 65 who have been entitled to Social Security disability benefits for at least 24 months
II)Persons under 65 who need long-term kidney dialysis treatment or a kidney transplant

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A
I only
B
II only
C
both I and II
D
neither I nor II
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Question 13
Multiple Choice

Which of the following statements about the coverage of health care services under Part A of Medicare is (are) true?
I)Services in the patient's home are covered if the patient requires skilled care and meets certain conditions.
II)Hospice care is available for beneficiaries with a terminal illness.

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A
I only
B
II only
C
both I and II
D
neither I nor II
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Question 14
Multiple Choice

Which of the following statements about hospice benefits under the hospital insurance (Part A) portion of Medicare is (are) true?
I) To become eligible for hospice care, a patient must first receive inpatient care for at least 10 consecutive days.
II) Hospice benefits are provided to persons who are terminally ill.

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A
I only
B
II only
C
both I and II
D
neither I nor II
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Question 15
Multiple Choice

Which of the following expenses is covered under the medical insurance (Part B) portion of the Medicare program?

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A
long-term care in a skilled nursing facility
B
the fee charged by a surgeon for an operation
C
the cost of a semi-private room during a hospital stay
D
routine prescription drugs outside of the hospital
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Question 16
Multiple Choice

Which of the following statements about the medical insurance (Part B) portion of Medicare is (are) true?
I) Participation in Part B of Medicare is voluntary.
II) It is provided at no cost to anyone who is fully insured under Medicare.

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A
I only
B
II only
C
both I and II
D
neither I nor II
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Question 17
Multiple Choice

Which of the following statements about the role of physicians with respect to Medicare claims is (are) true?
I)Physicians who do not accept an assignment of Medicare claims can charge as much as 200 percent of the Medicare-approved fee.
II)Physicians who accept assignment agree to accept the Medicare-approved amount as payment in full.

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A
I only
B
II only
C
both I and II
D
neither I nor II
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Question 18
Multiple Choice

Which of the following statements about Medigap policies is (are) true?
I)Insurers are required to have an open enrollment period of 6 months from the date an applicant first enrolls in Medicare Part B and is age 65 or older.
II)Most policies are of limited value because they largely duplicate benefits already provided by Medicare.

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A
I only
B
II only
C
both I and II
D
neither I nor II
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Question 19
Multiple Choice

Which of the following statements about the financing of the Social Security program is (are) true?
I)Although the self-employed pay an OASDI tax rate that is twice the employee rate, they are allowed certain deductions that reduce the effective tax rate.
II)The earnings base on which OASDI taxes are paid increases annually based on changes in average wages in the national economy.

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A
I only
B
II only
C
both I and II
D
neither I nor II
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Question 20
Multiple Choice

Objectives of unemployment insurance include which of the following?
I)To help unemployed workers find jobs.
II)To encourage employers to stabilize employment.

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A
I only
B
II only
C
both I and II
D
neither I nor II
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