RMI 2101 Chapter 13: rm13
12 Mar 2018
School
Department
Course
Professor
Document Summary
Loss of income to an employee or an employee"s dependents. Ex) perils injury/illness/sickness, death, unemployment, retirement. Examples of employee benefits: health expense benefits, retirement benefits, death benefits, disability benefits, unemployment benefits, social insurance provided through employers. Required employee benefits: health insurance for some firms (ale = applicable large employer, number of employees has to be equal or greater than 50, unemployment insurance, worker"s compensation, oasdi. Reasons for firms offering employee benefits ( in salary + sh. 4 benefit: take advantage of group insurance, to attract + retain capable employee, income tax advantages to employees, to enhance productivity of employees. Group insurance definition: insurer insures the group as a whole or not. Disadvantages of group insurance: inflexibility, typically offer limited choices for participants with varying needs. Conversion option: option to convert gi to ii without evidence of insurability, potential for adverse selection premiums are higher and insurer restricts the coverage in some way, cobra.
