51. What is medical underwriting? (Cost Advantage) A. A process where employers have to verify the medical history of their employees B. A process where the employer has to pay the difference for insuring high-risk employees C. A process where employees provide their past medical history to insurers D. A process where one insurance company combines with another to insure a company 52. In insurance terms, what does adverse selection refer to? (Cost Advantage) A. When employees choose an insurance plan they don't like, but are stuck with it for a year B. When insurance companies use medical underwriting to choose who to insure C. When employees are forced to choose between what they think are two inferior insurance programs D. The tendency of an insurance pool to disproportionately attract "bad risk" employees and discourage "good risk" employees 53. The degree to an increase in benefit costs is passed along to employees in the form of lower cash wages generally depends on the following factors? (Who Pays for Benefits?) A. The cash value employees place on the benefits B. The degree to which employers will increase or decrease their hiring when the market compensation level decreases or increases C. Whether the benefit cost increases for all employers in a market or for a particular employer D. All of the above 54. What are the three main reasons that employers offer discretionary benefits? (Why Do Employees Offer Benefits?) A. Employers have a cost advantage, the benefits help in recruiting and retaining workers and the company gets tax incentives to offer them B. It's required to by law, the company gets tax incentives to offer them, employers have a cost advantage C. The company gets tax incentives to offer them, the benefits help in recruiting and retaining workers, it's required to by law D. The benefits help in recruiting and retaining workers, employers have a cost advantage, it's required to by law
51. What is medical underwriting? (Cost Advantage) A. A process where employers have to verify the medical history of their employees B. A process where the employer has to pay the difference for insuring high-risk employees C. A process where employees provide their past medical history to insurers D. A process where one insurance company combines with another to insure a company 52. In insurance terms, what does adverse selection refer to? (Cost Advantage) A. When employees choose an insurance plan they don't like, but are stuck with it for a year B. When insurance companies use medical underwriting to choose who to insure C. When employees are forced to choose between what they think are two inferior insurance programs D. The tendency of an insurance pool to disproportionately attract "bad risk" employees and discourage "good risk" employees 53. The degree to an increase in benefit costs is passed along to employees in the form of lower cash wages generally depends on the following factors? (Who Pays for Benefits?) A. The cash value employees place on the benefits B. The degree to which employers will increase or decrease their hiring when the market compensation level decreases or increases C. Whether the benefit cost increases for all employers in a market or for a particular employer D. All of the above 54. What are the three main reasons that employers offer discretionary benefits? (Why Do Employees Offer Benefits?) A. Employers have a cost advantage, the benefits help in recruiting and retaining workers and the company gets tax incentives to offer them B. It's required to by law, the company gets tax incentives to offer them, employers have a cost advantage C. The company gets tax incentives to offer them, the benefits help in recruiting and retaining workers, it's required to by law D. The benefits help in recruiting and retaining workers, employers have a cost advantage, it's required to by law
Employee-Benefits-5th-Edition-Martocchio-Test-Bank.docx