Chapter 06 – Employer-Sponsored Disability Insurance, Life Insurance, and Workers’ Compensation Programs
Chapter 06
Employer-Sponsored Disability Insurance, Life Insurance, and Workers‘
Compensation Programs
True / False Questions
1. In short-term disability insurance plans, the exclusion period spans from the initial date of
hire to the date of eligibility for coverage. (Short-Term Disability Insurance Programs)
2. A miner who develops black lung disease is eligible for workers’ compensation benefits.
(Workers’ Compensation Claims)
3. Long-term disability insurance plans used to cover partial disabilities, but ceased due to high
costs. (Long-Term Disability Insurance Programs)
4. An ADEA safe harbor allows employers to reduce the duration of long-term disability
benefits as long as the level of benefits are the same for all workers with the same disability.
(The Age Discrimination in Employment Act (ADEA) of 1967)
5. In 2011, employers generally paid $700 annually per private sector employee for workers’
compensation protection. (Cost of Workers’ Compensation Insurance)
6. In the 1800s and early 1900s, the seriously injured workers left with virtually no recourse
because social insurance programs were nonexistent. (Origins of Disability Insurance and
Workers’ Compensation Insurance)
6-5
28. In 2011, workers’ compensation cost only about 10% of all legally required benefits for
civilian employees. (Workers’ Compensation Claims)
29. The wage loss approach bases benefit amounts on approximate loss of earning from
injuries. (Disability Income)
30. Dual capacity means that a firm may fulfill a role for an employee that is completely
different from its role as employer. (Dual Capacity)
31. Workers’ compensation laws do not apply to small businesses with fewer than a stipulated
number of employees (Coverage of Workers’ Compensation Programs)
32. According to ADA guidelines, which of the following is true? (The Americans with
Disabilities Act of 1990)
6-12
55. Briefly discuss the origins of disability insurance and workers’ compensation insurance
programs in the US. (Origins of Disability Insurance and Workers’ Compensation Insurance)
56. What are the main characteristics of long term disability insurance? (Long-Term Disability
Insurance Programs)
