California Insurance License Exam Practice Test Practice Question
Which government regulation prevents retirement group insurance plans from favoring highly compensated employees?
Correct Answer: B
Rationale: The Non-discrimination regulation ensures that retirement group insurance plans provide equal benefits to all employees, preventing favoritism towards highly compensated individuals. This promotes fairness and equity in employee benefits.
Option A, Anti-money laundering rules, pertains to financial crimes and does not relate to employee benefits or retirement plans.
Option C, Minimum distribution rules, focus on the timing of retirement account withdrawals, not on how benefits are allocated among employees.
Option D, Early withdrawal penalties, addresses penalties for withdrawing funds before retirement age and does not influence the distribution of benefits among different employee income levels.
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