1-For home owner insurance policy (HO3), there is a 80% rule. It is actually a c
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Question
1-For home owner insurance policy (HO3), there is a 80% rule. It is actually a coinsurance clause applied to the building structures. Explain what it means and how does it work?
2-In employee benefits chapter, can you explain why employers are interested in providing employee benefits to their employees?
3-Explain the difference between a defined contribution and a defined benefit plan in retirement saving plans.
4-Describe the characteristics of a government insurance program.
5-What are the requirements for receiving Social Security disability benefits?
Explanation / Answer
1. The 80% rule refers to the fact that most insurance companies will not fully cover the cost of damage to a house due to the occurrence of an insured event (e.g. fire or flood), unless the homeowner has purchased insurance coverage that is equal to at least 80% of the house's total replacement value. In the event that a homeowner has purchased an amount of coverage that is less than the minimum 80%, the insurance company will only reimburse the homeowner a proportionate amount of the required minimum coverage that should have been purchased.
2.
A recent report by the Families and Work Institute and SHRM revealed that
workplace flexibility provides employees with a positive impact on their work/
life experiences. These low-cost initiatives can lead to increased employee job
satisfaction, lower turnover and lower insurance costs.
2. SHRM believes that the United States must have a workplace flexibility policy that meets the needs of both employers and employees. As opposed to a one-size-fits-all mandate on all employers, we support a new approach that reflects diverse employee needsand preferences, as well as differences among work environments, representation, industries and organizational size. This workplace flexibility policy should support employees in balancing their work, family and personal obligations and,at the same time, provide certainty, predictability and stability to employers
3. A defined benefit plan identifies the specific benefit that will be payable to you at retirement. Your basic retirement benefit is usually based on a formula that takes into account factors like the number of years a participant works for the employer (years of service) and the participant's salary. Your retirement benefit is generally provided in the form of regular payments over your lifetime beginning at what the plan calls "normal retirement age," which is typically age 65. This stream of periodic payments is generally known as a pension or sometimes called an annuity.
A defined contribution plan specifies how much money will go into a retirement plan today. The amount typically is either a percentage of an employee's salary or a specific dollar amount. Then, those funds often are invested in mutual funds available inside the retirement plan. The amount you have at retirement depends on how much your employer contributes to the plan, how much you as the employee save in the plan, how long you leave those funds invested, and how well your investments perform inside the plan.
More and more employers are replacing defined benefit plans with defined contribution plans, primarily due to the expense and long-term obligations associated with running a defined benefit plan. If you have a defined benefit plan through your employer, be sure to regularly let your employer know that you really appreciate your retirement plan; it’s a benefit well worth keeping.
5. Eligibility Criteria to recive Social Security disability benefits
1. If you are working in 2016 and your earnings average more than $1,130 a month, you generally cannot be considered disabled.If you are not working, we will send your application to the Disability Determination Services office that will make the decision about your medical condition.
2. Your condition must interfere with basic work-related activities for your claim to be considered. If it does not, we will find that you are not disabled.
3. For each of the major body systems, we maintain a list of medical conditions that are so severe they automatically mean that you are disabled. If your condition is not on the list, we have to decide if it is of equal severity to a medical condition that is on the list. If it is, we will find that you are disabled
4. If your condition is severe but not at the same or equal level of severity as a medical condition on the list, then we must determine if it interferes with your ability to do the work you did previously
5. If you cannot do the work you did in the past, we see if you are able to adjust to other work.We consider your medical conditions and your age, education, past work experience and any transferable skills you may have. If you cannot adjust to other work, your claim will be approved. If you can adjust to other work, your claim will be denied.
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