FINA 4352 UNIT 5 AND 6 EXAM QUESTIONS AND ANSWERS
WITH COMPLETE SOLUTIONS VERIFIED
Which of the following statements regarding health savings accounts (HSAs) is
CORRECT?
Individuals between ages 55 and 65 who are covered by a high-deductible health plan
can make additional catch-up contributions to their HSA.
Which of the following consumer protection features must be included in long-
term care (LTC) insurance policies in order to qualify for favorable tax treatment?
Contracts must be guaranteed renewable or noncancellable.
If the contract is a replacement policy, the new insurer must recognize the insured's
previous satisfaction of pre-existing condition exclusion.
Which of the following statements regarding the 2010 Health Care Reform
Legislation is (are) CORRECT?
It created state-based health insurance exchanges through which individuals and some
small businesses can purchase qualified health care coverage.
People who fail to maintain the required coverage may be subject to a penalty tax.
Refundable health care tax credits will help make health care coverage more affordable
for low-income earners.
, Which of the following statements concerning the tax treatment of qualified long-
term care (LTC) insurance is(are) CORRECT?
Persons who itemize deductions can deduct the premiums for qualified long-term care
policies, subject to certain limits.
Which part of Medicare is intended to provide protection for seniors who have
considerable prescription drug costs and covers both generic and brand-name
drugs?
Part D
Which of the following persons are eligible for COBRA?
A child who ceases to be an eligible dependent
A former spouse after a divorce from a covered employee
An employee who changes to part-time status
A dependent child of a deceased worker
Which of the following statements concerning disability income insurance is (are)
CORRECT?
Employer contributions for an employee's disability income insurance are fully
deductible by the employer as an ordinary and necessary business expense.
Contributions by an individual employee are considered payments for personal disability
income insurance and are not tax deductible.
WITH COMPLETE SOLUTIONS VERIFIED
Which of the following statements regarding health savings accounts (HSAs) is
CORRECT?
Individuals between ages 55 and 65 who are covered by a high-deductible health plan
can make additional catch-up contributions to their HSA.
Which of the following consumer protection features must be included in long-
term care (LTC) insurance policies in order to qualify for favorable tax treatment?
Contracts must be guaranteed renewable or noncancellable.
If the contract is a replacement policy, the new insurer must recognize the insured's
previous satisfaction of pre-existing condition exclusion.
Which of the following statements regarding the 2010 Health Care Reform
Legislation is (are) CORRECT?
It created state-based health insurance exchanges through which individuals and some
small businesses can purchase qualified health care coverage.
People who fail to maintain the required coverage may be subject to a penalty tax.
Refundable health care tax credits will help make health care coverage more affordable
for low-income earners.
, Which of the following statements concerning the tax treatment of qualified long-
term care (LTC) insurance is(are) CORRECT?
Persons who itemize deductions can deduct the premiums for qualified long-term care
policies, subject to certain limits.
Which part of Medicare is intended to provide protection for seniors who have
considerable prescription drug costs and covers both generic and brand-name
drugs?
Part D
Which of the following persons are eligible for COBRA?
A child who ceases to be an eligible dependent
A former spouse after a divorce from a covered employee
An employee who changes to part-time status
A dependent child of a deceased worker
Which of the following statements concerning disability income insurance is (are)
CORRECT?
Employer contributions for an employee's disability income insurance are fully
deductible by the employer as an ordinary and necessary business expense.
Contributions by an individual employee are considered payments for personal disability
income insurance and are not tax deductible.
