Insurance MCQ

What determines the full amount of Social Security retirement benefits a qualified individual is entitled to receive? Answer: Primary Insurance Amount (PIA)

To be eligible for Social Security disability benefits, an employee must be unable to perform Answer: any occupation

One becomes eligible for Social Security disability benefits after having been disabled for Answer: 5 months

All of these are considered to be a benefit under Social Security, EXCEPT for Answer: unemployment

What is Old Age and Survivors Health Insurance (OASDHI) also known as? Answer: Social Security

If Martha would like to receive Social Security retirement benefits prior to age 65, what age can she do this? A) 60. B) She cannot receive benefits prior to age 65. C) Whenever she has accumulated the required work credits. D) 62. Answer: D) 62.

The period in which there are no Social Security benefits for the surviving spouse is called the? A) ineligible period. B) elimination period. C) dependency period. D) blackout period. Answer: D) blackout period.

How is Social Security (OASDI) funded? A) Sales taxes. B) Treasury Bonds. C) Federal grants. D) Payroll taxes. Answer: D) Payroll taxes.

In determining Social Security retirement benefits, which of the following statements is CORRECT? A) The PIA is a determination of the amount equal to the worker's full retirement benefit at the worker's full retirement age. B) The Primary Insurance Amount (PIA) determines the worker's average indexed monthly earnings (AIME). C) Workers retiring past age 59th can receive 100% of their PIA. D) Average monthly wages (AMW) are adjusted for inflation. Answer: A) The PIA is a determination of the amount equal to the worker's full retirement benefit at the worker's full retirement age.

Jessica, a widow, stopped receiving survivor Social Security benefits when her son turned 16. At what age will she be eligible to start receiving benefits again? A) 60. B) 65. C) 59 1/2. D) 62. Answer: A) 60.

Larry died in an automobile accident. His survivors are eligible for limited Social Security benefits. Larry's insured status was? A) Conditionally insured. B) Half insured. C) Insured. D) Partially insured. Answer: D) Partially insured.

Rudy is eligible for full death, retirement, and disability benefits under Social Security. His worker status is? A) fully insured. B) partially insured. C) currently insured. D) completely insured. Answer: A) fully insured.

Individuals covered by Social Security include all of the following EXCEPT? A) Federal employees (after 1984). B) Railroad workers. C) Small business owners. D) State workers who are not covered by state pension plans. Answer: B) Railroad workers.

FICA tax is applied to an employee's income up to a certain income amount. This amount is called? A) average indexed monthly earnings. B) average monthly wage. C) primary insurance amount. D) taxable wage base. Answer: D) taxable wage base.

What is the interval spanning between the day when the youngest child of a family turns 16 and before the surviving spouse turns age 60 called? A) Blackout period. B) Blackout interval. C) Accumulation period. D) Nonpayment period. Answer: A) Blackout period.

What is the formal name for Social Security? A) Advanced Age Survivors Disability Insurance. B) Qualifed Age Survivors Disability Insurance. C) Retirement Age Survivors Disability Insurance. D) Old Age Survivors Disability Insurance. Answer: D) Old Age Survivors Disability Insurance.

Delores just received her first Social Security Disability payment. What can we correctly assume about her? A) She is at least 65 years old. B) She has applied for Medicare. C) She became disabled 12 months ago. D) Her disability is expected to last at least 12 months. Answer: D) Her disability is expected to last at least 12 months.

Under Social Security, in order to be considered fully insured, the worker must have worked how many years and received how many quarters? A) 20 years or less and 40 full quarters. B) 10 years and 40 full quarters. C) 40 years or less than 10 quarters. D) 40 years and 10 full quarters. Answer: B) 10 years and 40 full quarters.

Social Security benefits include all of the following, EXCEPT? A) Retirement benefits. B) Medicare benefits. C) Disability benefits. D) Unemployment benefits. Answer: D) Unemployment benefits.

Jan, a single, working mother, dies at age 40. Dave, her only son, would receive a one-time lump-sum benefit of? A) $500. B) $2,555. C) $1,000. D) $255. Answer: D) $255.