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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. What are usual, customary and reasonable charges (UCR)?

A) The charges that are published annually in the Global Insurers' Medical Cost Comparison Guide
B) The charges that an insurance carrier determines are normal for a particular medical procedure within a specific geographical area
C) The charges that are allowable for any given medical procedure with no pre-treatment authorization
D) The charges that are typically paid up front by a plan participant for services rendered.

2. What statement is most accurate regarding communication of compensation information?

A) The ready availability of information online has made it unnecessary for compensation professionals to tailor messages since individuals can research terms and concepts after the fact if they don't understand a communication.
B) Compensation terms and practices are unclear to most individuals who do not work in this area and communication should be tailored to the least informed member of the target audience.
C) Compensation terms are well-known and easily understood by most stakeholders.
D) Compensation professionals should anticipate the level of the audience and tailor messages to their needs.

3. A medical benefits plan provision ensuring that the correct plan is paying expenses when the member is covered under more than one plan is known as what?

A) Out-of-pocket expenses
B) Deductible
C) Coordination of benefits
D) Coinsurance

4. Which one of the following should be included in a compensation guide for managers?

A) Individual salary rates of employees in their department
B) The consequences of various disciplinary measures
C) Information on common management processes

5. Which one of the following practices will help to ensure proper documentation for compliance with legislation?

A) Use one survey source instead of several
B) Be consistent in procedures and completeness
C) Allow employees easy and unlimited access to documentation

Solutions: