2026 UPDATED QUESTIONS DOWNLOAD
Ultimate CEBS GBA 2 Practice Exam Comprehensive Questions
& Verified Rationales for Managing Group Benefit Plans (2026-
2027 Edition)
"Dominate the CEBS GBA 2 exam with this massive -question practice set. Spanning all 12
modules, this guide covers group health, life, disability, dental, flex plans, and regulatory
compliance (ACA, ERISA, HIPAA). Every question includes a verified answer and a professional
rationale to help you master the 'why' behind the concepts."
What is the primary purpose of group health insurance?
A. Increase employer profits
B. Provide financial protection against medical expenses
C. Replace individual insurance markets
D. Guarantee free healthcare services
Answer:
B. PROVIDE FINANCIAL PROTECTION AGAINST MEDICAL EXPENSES
Rationale: Group health insurance helps employees manage healthcare costs through shared
risk and employer-sponsored coverage.
Question 2
Which type of health plan requires members to choose a primary care physician (PCP)?
A. PPO
B. HMO
C. POS
D. Indemnity Plan
Answer:
B. HMO
Rationale: Health Maintenance Organizations require members to select a PCP who
coordinates care.
,2026 UPDATED QUESTIONS DOWNLOAD
Question 3
Which term describes the amount employees must pay before insurance coverage begins?
A. Premium
B. Deductible
C. Copayment
D. Coinsurance
Answer:
B. DEDUCTIBLE
Rationale: The deductible is the initial amount paid by the insured before the plan begins
covering costs.
Question 4
What is the purpose of coinsurance?
A. Set fixed visit costs
B. Share healthcare costs between insurer and insured
C. Replace premiums
D. Limit coverage
Answer:
B. SHARE HEALTHCARE COSTS BETWEEN INSURER AND INSURED
Rationale: Coinsurance requires the insured to pay a percentage of covered expenses.
Question 5
Which federal law protects employees’ rights to continue health coverage after job loss?
A. ERISA
B. HIPAA
C. COBRA
D. ACA
Answer:
C. COBRA
,2026 UPDATED QUESTIONS DOWNLOAD
Rationale: COBRA allows eligible employees to continue employer-sponsored health coverage
after certain qualifying events.
Question 6
Which law establishes standards for employee benefit plan administration?
A. ERISA
B. HIPAA
C. FLSA
D. ADA
Answer:
A. ERISA
Rationale: The Employee Retirement Income Security Act regulates employer-sponsored benefit
plans.
Question 7
Which funding method involves the employer assuming most financial risk for claims?
A. Fully insured plan
B. Self-funded plan
C. Government-funded plan
D. Hybrid plan
Answer:
B. SELF-FUNDED PLAN
Rationale: In self-funded plans, employers pay claims directly rather than purchasing insurance.
Question 8
Which document describes plan rules, eligibility, and benefits?
A. Summary Plan Description (SPD)
B. Insurance contract
C. Employment agreement
D. Financial report
, 2026 UPDATED QUESTIONS DOWNLOAD
Answer:
A. SUMMARY PLAN DESCRIPTION (SPD)
Rationale: SPDs provide participants with essential plan information.
Question 9
Which organization administers Medicare in the United States?
A. Department of Labor
B. Centers for Medicare & Medicaid Services
C. Internal Revenue Service
D. Department of Veterans Affairs
Answer:
B. CENTERS FOR MEDICARE & MEDICAID SERVICES
Rationale: CMS manages Medicare and Medicaid programs.
Question 10
Which type of health plan offers the most flexibility in choosing providers?
A. HMO
B. PPO
C. EPO
D. POS
Answer:
B. PPO
Rationale: Preferred Provider Organizations allow members to see providers both inside and
outside the network.
Question 11
What is the purpose of utilization management?
A. Increase healthcare spending
B. Control healthcare costs and ensure appropriate care
Ultimate CEBS GBA 2 Practice Exam Comprehensive Questions
& Verified Rationales for Managing Group Benefit Plans (2026-
2027 Edition)
"Dominate the CEBS GBA 2 exam with this massive -question practice set. Spanning all 12
modules, this guide covers group health, life, disability, dental, flex plans, and regulatory
compliance (ACA, ERISA, HIPAA). Every question includes a verified answer and a professional
rationale to help you master the 'why' behind the concepts."
What is the primary purpose of group health insurance?
A. Increase employer profits
B. Provide financial protection against medical expenses
C. Replace individual insurance markets
D. Guarantee free healthcare services
Answer:
B. PROVIDE FINANCIAL PROTECTION AGAINST MEDICAL EXPENSES
Rationale: Group health insurance helps employees manage healthcare costs through shared
risk and employer-sponsored coverage.
Question 2
Which type of health plan requires members to choose a primary care physician (PCP)?
A. PPO
B. HMO
C. POS
D. Indemnity Plan
Answer:
B. HMO
Rationale: Health Maintenance Organizations require members to select a PCP who
coordinates care.
,2026 UPDATED QUESTIONS DOWNLOAD
Question 3
Which term describes the amount employees must pay before insurance coverage begins?
A. Premium
B. Deductible
C. Copayment
D. Coinsurance
Answer:
B. DEDUCTIBLE
Rationale: The deductible is the initial amount paid by the insured before the plan begins
covering costs.
Question 4
What is the purpose of coinsurance?
A. Set fixed visit costs
B. Share healthcare costs between insurer and insured
C. Replace premiums
D. Limit coverage
Answer:
B. SHARE HEALTHCARE COSTS BETWEEN INSURER AND INSURED
Rationale: Coinsurance requires the insured to pay a percentage of covered expenses.
Question 5
Which federal law protects employees’ rights to continue health coverage after job loss?
A. ERISA
B. HIPAA
C. COBRA
D. ACA
Answer:
C. COBRA
,2026 UPDATED QUESTIONS DOWNLOAD
Rationale: COBRA allows eligible employees to continue employer-sponsored health coverage
after certain qualifying events.
Question 6
Which law establishes standards for employee benefit plan administration?
A. ERISA
B. HIPAA
C. FLSA
D. ADA
Answer:
A. ERISA
Rationale: The Employee Retirement Income Security Act regulates employer-sponsored benefit
plans.
Question 7
Which funding method involves the employer assuming most financial risk for claims?
A. Fully insured plan
B. Self-funded plan
C. Government-funded plan
D. Hybrid plan
Answer:
B. SELF-FUNDED PLAN
Rationale: In self-funded plans, employers pay claims directly rather than purchasing insurance.
Question 8
Which document describes plan rules, eligibility, and benefits?
A. Summary Plan Description (SPD)
B. Insurance contract
C. Employment agreement
D. Financial report
, 2026 UPDATED QUESTIONS DOWNLOAD
Answer:
A. SUMMARY PLAN DESCRIPTION (SPD)
Rationale: SPDs provide participants with essential plan information.
Question 9
Which organization administers Medicare in the United States?
A. Department of Labor
B. Centers for Medicare & Medicaid Services
C. Internal Revenue Service
D. Department of Veterans Affairs
Answer:
B. CENTERS FOR MEDICARE & MEDICAID SERVICES
Rationale: CMS manages Medicare and Medicaid programs.
Question 10
Which type of health plan offers the most flexibility in choosing providers?
A. HMO
B. PPO
C. EPO
D. POS
Answer:
B. PPO
Rationale: Preferred Provider Organizations allow members to see providers both inside and
outside the network.
Question 11
What is the purpose of utilization management?
A. Increase healthcare spending
B. Control healthcare costs and ensure appropriate care
