Limitations of a Flexible Benefit Plan Include All of the Following

question 172

Multiple Choice

Limitations of a flexible benefit plan include all of the following except:

• A) accurately predicting the number of employees that might choose each benefit is difficult
• B) record keeping becomes more complicated
• C) group rates for life and medical insurance are affected
• D) employees complain about "topping out"

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Definitions:

Fair Value

An estimate of the market value of an asset or liability, based on current prices in active markets for identical or similar items.