CFP 512 - MODULE 5 EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS VERIFIED
Contributory Plan
employee pays some portion of premium
Noncontributory plan
employer pays entire premium cost
Group LTC
similar to an individual LTC policy in terms of coverage and benefits, but the cost to the
employee is slightly less than individual coverage
Consolidated Omnibus Budget Reconciliation Act (COBRA)
a federal law that requires employers with 20 or more employees to allow former
employees and their dependents to continue the benefits provided by the employer's
group health insurance plan
Self-funded plan
A plan in which an employer pays insurance benefits from a fund derived from the
employer's current revenues
fully-insured plan
an insurance company provides benefit coverage based on a contract between the
employer and the insurance provider
a cafeteria plan
allows employees to participate only in those benefits they find useful
COMPLETE SOLUTIONS VERIFIED
Contributory Plan
employee pays some portion of premium
Noncontributory plan
employer pays entire premium cost
Group LTC
similar to an individual LTC policy in terms of coverage and benefits, but the cost to the
employee is slightly less than individual coverage
Consolidated Omnibus Budget Reconciliation Act (COBRA)
a federal law that requires employers with 20 or more employees to allow former
employees and their dependents to continue the benefits provided by the employer's
group health insurance plan
Self-funded plan
A plan in which an employer pays insurance benefits from a fund derived from the
employer's current revenues
fully-insured plan
an insurance company provides benefit coverage based on a contract between the
employer and the insurance provider
a cafeteria plan
allows employees to participate only in those benefits they find useful
