AHIP Exam AHM-250 Topic 1 Question 111 Discussion

Actual exam question for AHIP's AHM-250 exam

Question #: 111
Topic #: 1

One feature of the Employee Retirement Income Security Act (ERISA) is that it:

ARequires self-funded employee benefit plans to pay premium taxes at the state level.

BContains a pre-emption provision, which typically makes the terms of ERISA take precedence over any state laws that regulate employee welfare benefit plans.

CContains strict reporting and disclosure requirements for all employee benefit plans except health plans.

DRequires that state insurance laws apply to all employee benefit plans except insured plans.

Show Suggested Answer

Suggested Answer: B

by Corazon at Apr 30, 2025, 03:32 PM

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Phil

2 days ago

I see your point, Maryanne, but I still think B is the best answer because ERISA does prioritize federal law over state law.

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Maryanne

15 days ago

But what about option D? State insurance laws applying to all plans except insured plans makes sense too.

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James

15 days ago

Haha, I bet the insurance companies hate that pre-emption clause! B is the way to go.

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Devora

20 days ago

I think B is the correct answer. ERISA was designed to create a consistent set of federal regulations for employee benefit plans.

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Viola

1 days ago

I agree, B is the correct answer. ERISA does have a pre-emption provision.

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Lilli

21 days ago

I agree with Whitney, ERISA does have a pre-emption provision.

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Whitney

26 days ago

I think the answer is B.

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Alpha

27 days ago

B sounds like the right answer to me. ERISA definitely has a pre-emption clause that makes it take priority over state laws.

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