A Benefit Audit Enables Employers to Do Which of the Following

question 21

Multiple Choice

A benefit audit enables employers to do which of the following?

• A)all of the choices
• B)identify opportunities for savings
• C)identify who is in charge of the benefits budget
• D)exert control over the benefits area
• E)ensure that insurers are doing a good job

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Definitions:

Moral Hazard

A situation where one party takes risks because they know they will not have to bear the full consequences of their actions.

Divorce Insurance

A type of financial product designed to provide financial protection to individuals in case of a divorce, typically by paying a lump sum.

Marital Problems

Issues or conflicts arising between spouses that can affect the stability and health of the marriage.

Adverse Selection

A situation where asymmetric information results in high-risk individuals being more likely to participate in a contract, often seen in insurance markets.