LLQP Group Benefits Plan Concepts 2

Question 1

What is the primary advantage of group insurance over individual insurance for employees?

Accepted Answer

Lower cost due to group underwriting and employer premium sharing

Answer

Higher coverage limits

Answer

Better investment returns

Answer

Guaranteed insurability for all medical conditions forever

Question 2

What does 'Administrative Services Only' (ASO) mean in the context of group benefits?

Accepted Answer

The insurer provides only administrative support while the employer self-insures the risk

Answer

The insurer handles all aspects of the plan including risk assumption

Answer

Administrative staff manage claims without insurer involvement

Answer

Only administrative employees are covered under the plan

Question 3

What is a 'health spending account' (HSA) in Canadian group benefits?

Accepted Answer

An employer-funded account that reimburses eligible medical and dental expenses not covered by the base plan

Answer

A savings account at a bank designated for health expenses

Answer

A government program that supplements provincial health insurance

Answer

A retirement savings vehicle for healthcare in retirement

Question 4

In a group benefits plan, what is the purpose of the 'non-evidence maximum' (NEM)?

Accepted Answer

The maximum coverage amount available without requiring individual medical evidence

Answer

The maximum amount an employee can contribute to the plan

Answer

The maximum number of employees who can join without evidence

Answer

The maximum claim amount payable without documentation

Question 5

What is the typical waiting period before a new employee becomes eligible for group benefits in Canada?

Accepted Answer

Usually 3 months, though it varies by employer

Answer

Immediate coverage on the first day of employment

Answer

One year of continuous employment

Answer

Five years of service

Question 6

What is a 'flex benefits' or 'flexible benefits' plan in the Canadian group benefits context?

Accepted Answer

A plan where employees can choose their own benefit options from a menu of choices

Answer

A plan that only covers flexible spending

Answer

A plan where premiums flex based on market conditions

Answer

A plan exclusively for contract or flexible workers