Principles of Risk Management and Insurance, 12e(Rejda/McNamara)Chapter 18 Social Insurance1) Which of the following is a reason that social insurance programs exist? A) to compete with private insurance programsB) to provide a base of economic securityC) to provide need-tested benefits to low-income individualsD) to reduce involvement of the government in insurance marketsAnswer: BQuestion Status: Revised2) Which of the following statements about the characteristics of social insurance programs is true?3) Which of the following statements about the characteristics of social insurance programs is true? 4) 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 doesnot wish to participate in the program. 1
5) One insured status under Social Security requires you to have earned at least six credits duing the last 13 calendar quarters ending with the quarter of death, disability, or entitlement to retirement benefits. This insured status is A) disability insured. B) temporarily insured. C) fully insured.D) currently insured. Answer: DQuestion Status: Revised6) 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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- Fall '13