Which of the Following Is Not Required for Qualification of a Group

question 35

Multiple Choice

Which of the following is not required for qualification of a group health or disability plan?

• A) Must cover all full-time and part-time employees from the first day of work
• B) Must be in writing
• C) Must create legally enforceable rights for the employees
• D) Must be for the exclusive benefit of the employees

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Definitions:

Financial Instrument

A contract that leads to the creation of a financial asset for one party and results in a financial liability or equity instrument for another party.

Market Risk

The risk that the value of a financial instrument will fluctuate because of changes in foreign exchange rates, market interest rates or some other market prices.

Credit Risk

The risk of loss due to a borrower's failure to make payments on any type of debt.

Liquidity Risk

The risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities.