CEBS GBA 2 EXAM STUDY GUIDE
2026/2027 COMPLETE QUESTIONS WITH
VERIFIED CORRECT ANSWERS ||
100% GUARANTEED PASS
<NEWEST VERSION>
1. Human Life Value Approach (HLV) - ANSWER ✔ The present value of the
family's share of the deceased breadwinner's future earnings
2. HLV Calculation - ANSWER ✔ 1. estimate the individuals average annual
earnings over lifetime
Deduct taxes and self-mainenance
determine the years from the individual's current age to the age of retirement
Using a discount rate, determine the family's share of earnings for the period
in step 3
3. HLV Limitations - ANSWER ✔ Sources of income after death are not
considered, employee benefits are ignored, and calculation assumes earnings
and expenses are constant (ignores factors like births/divorce), inflation is
ignored, the discount can increase the HLV
4. Needs approach for estimating life insurance to own - ANSWER ✔ 1. fund
for burial, medical bills, debts, administration of estate, inheritance and
income taxes
2. Income to adjust to loss of primary wage earner
3. Income for dependents under 18
4. coverage for SS benefit blackout period
5. Special considerations (education, emergency fund)
, 6. Retirement supplement
5. Term Insurance - ANSWER ✔ Temporary protection life insurance for 5,10,
15, 20, or 30 years, which expires if insured is still alive
6. Cash Value Insurance (whole life) - ANSWER ✔ a type of insurance that
has two components: life insurance and a savings plan.
7. Ordinary Whole Life Insurance - ANSWER ✔ a level-premium policy that
provides lifetime protection to age 121, and builds cash equity. It has the
potential to leave individuals under-insured because of the high cost
8. According to the RAND Health Insurance Experiment, which variable has
the greatest power in explaining health expenditures?
A.) Welfare eligibility
B.) Prior utilization
C.) Physical health (based on self-reported measures)
D.) General health (based on self-reported measures)
E.) Mental health (based on self-reported measures) - ANSWER ✔ B.)
Prior utilization
9. A provision in some group life insurance plans that provides for the payment
of all or part of the death benefit in the event of the insured's terminal illness
is called:
A.) Accelerated death benefits
B.) Waiver of premiums
C.) Maturity value benefits
D.) Continuation-of-protection
, E.) Assignment - ANSWER ✔ A.) Accelerated death benefits
10.All of the following are underwriting methods used in health insurance
EXCEPT:
A.) Adjusted community rating
B.) Retrospective experience rating
C.) Community rating by class
D.) Administrative rating
E.) Prospective experience rating - ANSWER ✔ D.) Administrative
rating
11.Originating in the 1980s with a continued following today,
___________________ is a management approach to long-term success
through customer satisfaction in which all members of an organization
participate in improving processes, products, services, and the culture in
which they work.
a) Total quality management (TQM)
b) Lean
c) Six Sigma
d) Lean Six Sigma
e) Data analytics
f) The Triple Aim - ANSWER ✔ a) Total quality management
(TQM)
12.Of the elements central to TQM, which resemble strategies seen today in
Lean and Six Sigma, ______________ refers to the strategy that patients
ultimately determine the level of quality.
a) Patient focus (or customer focus)
, b) Total employee involvement
c) Process-centered approach
d) Integrated system
e) Strategic and systematic approach
f) Continual improvement
g) Fact-based decisions
h) Communication - ANSWER ✔ a) Patient focus (or customer
focus)
13.Of the elements central to TQM, which resemble strategies seen today in
Lean and Six Sigma, ______________ refers to the strategy that involves a
series of steps that takes inputs from suppliers and transforms them into
outputs to be delivered to customers. With this strategy, necessary steps are
defined and performance measures are continuously monitored to detect
unexpected variation.
a) Patient focus (or customer focus)
b) Total employee involvement
c) Process-centered approach
d) Integrated system
e) Strategic and systematic approach
f) Continual improvement
g) Fact-based decisions
h) Communication - ANSWER ✔ c) Process-centered approach
14.Of the elements central to TQM, which resemble strategies seen today in
Lean and Six Sigma, ______________ refers to the strategy which states
that the organization should be both analytical and creative in meeting
patient needs on an ongoing basis.
a) Patient focus (or customer focus)
b) Total employee involvement
c) Process-centered approach
2026/2027 COMPLETE QUESTIONS WITH
VERIFIED CORRECT ANSWERS ||
100% GUARANTEED PASS
<NEWEST VERSION>
1. Human Life Value Approach (HLV) - ANSWER ✔ The present value of the
family's share of the deceased breadwinner's future earnings
2. HLV Calculation - ANSWER ✔ 1. estimate the individuals average annual
earnings over lifetime
Deduct taxes and self-mainenance
determine the years from the individual's current age to the age of retirement
Using a discount rate, determine the family's share of earnings for the period
in step 3
3. HLV Limitations - ANSWER ✔ Sources of income after death are not
considered, employee benefits are ignored, and calculation assumes earnings
and expenses are constant (ignores factors like births/divorce), inflation is
ignored, the discount can increase the HLV
4. Needs approach for estimating life insurance to own - ANSWER ✔ 1. fund
for burial, medical bills, debts, administration of estate, inheritance and
income taxes
2. Income to adjust to loss of primary wage earner
3. Income for dependents under 18
4. coverage for SS benefit blackout period
5. Special considerations (education, emergency fund)
, 6. Retirement supplement
5. Term Insurance - ANSWER ✔ Temporary protection life insurance for 5,10,
15, 20, or 30 years, which expires if insured is still alive
6. Cash Value Insurance (whole life) - ANSWER ✔ a type of insurance that
has two components: life insurance and a savings plan.
7. Ordinary Whole Life Insurance - ANSWER ✔ a level-premium policy that
provides lifetime protection to age 121, and builds cash equity. It has the
potential to leave individuals under-insured because of the high cost
8. According to the RAND Health Insurance Experiment, which variable has
the greatest power in explaining health expenditures?
A.) Welfare eligibility
B.) Prior utilization
C.) Physical health (based on self-reported measures)
D.) General health (based on self-reported measures)
E.) Mental health (based on self-reported measures) - ANSWER ✔ B.)
Prior utilization
9. A provision in some group life insurance plans that provides for the payment
of all or part of the death benefit in the event of the insured's terminal illness
is called:
A.) Accelerated death benefits
B.) Waiver of premiums
C.) Maturity value benefits
D.) Continuation-of-protection
, E.) Assignment - ANSWER ✔ A.) Accelerated death benefits
10.All of the following are underwriting methods used in health insurance
EXCEPT:
A.) Adjusted community rating
B.) Retrospective experience rating
C.) Community rating by class
D.) Administrative rating
E.) Prospective experience rating - ANSWER ✔ D.) Administrative
rating
11.Originating in the 1980s with a continued following today,
___________________ is a management approach to long-term success
through customer satisfaction in which all members of an organization
participate in improving processes, products, services, and the culture in
which they work.
a) Total quality management (TQM)
b) Lean
c) Six Sigma
d) Lean Six Sigma
e) Data analytics
f) The Triple Aim - ANSWER ✔ a) Total quality management
(TQM)
12.Of the elements central to TQM, which resemble strategies seen today in
Lean and Six Sigma, ______________ refers to the strategy that patients
ultimately determine the level of quality.
a) Patient focus (or customer focus)
, b) Total employee involvement
c) Process-centered approach
d) Integrated system
e) Strategic and systematic approach
f) Continual improvement
g) Fact-based decisions
h) Communication - ANSWER ✔ a) Patient focus (or customer
focus)
13.Of the elements central to TQM, which resemble strategies seen today in
Lean and Six Sigma, ______________ refers to the strategy that involves a
series of steps that takes inputs from suppliers and transforms them into
outputs to be delivered to customers. With this strategy, necessary steps are
defined and performance measures are continuously monitored to detect
unexpected variation.
a) Patient focus (or customer focus)
b) Total employee involvement
c) Process-centered approach
d) Integrated system
e) Strategic and systematic approach
f) Continual improvement
g) Fact-based decisions
h) Communication - ANSWER ✔ c) Process-centered approach
14.Of the elements central to TQM, which resemble strategies seen today in
Lean and Six Sigma, ______________ refers to the strategy which states
that the organization should be both analytical and creative in meeting
patient needs on an ongoing basis.
a) Patient focus (or customer focus)
b) Total employee involvement
c) Process-centered approach
