2026 UPDATED QUESTIONS DOWNLOAD
Ultimate CEBS GBA 2 Practice Exam: 150 Comprehensive
Questions & Verified Rationales for Managing Group Benefit
Plans (2025-2026 Edition)
"Dominate the CEBS GBA 2 exam with this massive 150-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."
1. According to the RAND Health Insurance Experiment, which variable has the
greatest power in explaining health expenditures?
A. Age
B. Gender
C. Prior utilization
D. Geographic location
• Answer: C
• Rationale: Research indicates that a person’s past medical usage is the most
accurate predictor of future spending, far outweighing demographic factors.
2. Which metal level plan under the ACA is the only one where cost-sharing
subsidies are available?
A. Bronze
B. Silver
C. Gold
D. Platinum
• Answer: B
• Rationale: While premiums can be subsidized on any metal level, cost-sharing
reductions (CSRs) that lower out-of-pocket costs are legally tied to Silver-level
plans.
3. In group life insurance, the "Waiver of Premium" provision typically triggers
when:
A. An employee is laid off
,2026 UPDATED QUESTIONS DOWNLOAD
B. An employee becomes totally disabled
C. An employee reaches age 65
D. An employee works part-time
• Answer: B
• Rationale: This provision allows life insurance coverage to continue without
further premium payments if the insured becomes totally disabled before a
specific age.
4. What is the standard waiting period for Social Security Disability Income (SSDI)
benefits?
A. 3 months
B. 5 consecutive months
C. 12 months
D. 24 months
• Answer: B
• Rationale: SSDI requires a 5-month waiting period before benefits begin, and
the disability must be expected to last at least 12 months or result in death.
5. Which type of dental plan pays benefits based on a "Table of Allowances"?
A. PPO Dental
B. Scheduled Plan
C. Non-scheduled Plan
D. DHMO
• Answer: B
• Rationale: Scheduled plans list a fixed dollar amount for each procedure,
whereas non-scheduled plans pay based on "Usual, Customary, and
Reasonable" (UCR) charges.
6. "Accelerated Death Benefits" allow a terminally ill policyholder to receive:
A. A loan against the policy
B. A portion of the death benefit while still living
C. Double the death benefit if the death is accidental
D. Only the interest earned on the policy
• Answer: B
,2026 UPDATED QUESTIONS DOWNLOAD
• Rationale: This "living benefit" provides financial support for end-of-life care by
advancing a percentage of the face value.
7. A "Core-Plus" flexible benefit plan is best described as:
A. A plan where everyone receives the same benefits
B. A plan with a mandatory base of benefits and "flex credits" to buy additional coverage
C. A plan that only offers health and life insurance
D. A plan where employees pay 100% of the costs
• Answer: B
• Rationale: The "Core" represents the mandatory minimum coverage (e.g., basic
life/health), and "Plus" refers to the options employees choose using employer-
provided credits.
8. Under the ACA, a "Large Employer" is defined as one having at least how many
full-time equivalent (FTE) employees?
A. 25
B. 50
C. 100
D. 500
• Answer: B
• Rationale: The employer mandate and reporting requirements generally apply to
companies with 50 or more FTEs.
9. What is the primary difference between an HRA and an HSA?
A. Only HRAs can be funded by employees
B. Only HSAs are portable (the employee keeps the account after leaving)
C. HRAs must be paired with a High Deductible Health Plan (HDHP)
D. HSAs are only for dental and vision
• Answer: B
• Rationale: Health Reimbursement Arrangements (HRAs) are employer-owned;
Health Savings Accounts (HSAs) are individual-owned and portable.
10. "Own-Occupation" disability insurance defines disability as the inability to:
A. Perform any job for which the person is qualified
B. Perform the duties of their specific current job
, 2026 UPDATED QUESTIONS DOWNLOAD
C. Work in a sedentary environment
D. Earn more than the minimum wage
• Answer: B
• Rationale: "Own-Occ" is the most liberal definition for the claimant, paying
benefits even if they could work in a different field.
11. Which dental procedure is typically categorized as "Class II" (Basic)?
A. Routine cleanings
B. Root canals and fillings
C. Orthodontics
D. Bridges and dentures
• Answer: B
• Rationale: Class I is preventive (cleanings), Class II is basic restorative
(fillings/extractions), and Class III is major restorative (crowns/bridges).
12. In a "Modular" flex plan, employees choose from:
A. Individual line items (like a menu)
B. Pre-designed packages of benefits
C. Only two choices: High or Low coverage
D. Benefits that change every month
• Answer: B
• Rationale: Modular plans offer bundled "packages" (Module A, Module B) to
simplify choice and minimize adverse selection.
13. What is the "Elimination Period" in a Long-Term Disability (LTD) policy?
A. The time before an employee is fired
B. The time between the onset of disability and the start of benefit payments
C. The time during which the insurer can cancel the policy
D. The time it takes to process a claim
• Answer: B
• Rationale: Also called a waiting period, it is essentially a "time deductible" (e.g.,
90 or 180 days).
14. Which federal law requires that group health plans provide parity between
mental health/substance use disorder benefits and medical/surgical benefits?
A. COBRA
Ultimate CEBS GBA 2 Practice Exam: 150 Comprehensive
Questions & Verified Rationales for Managing Group Benefit
Plans (2025-2026 Edition)
"Dominate the CEBS GBA 2 exam with this massive 150-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."
1. According to the RAND Health Insurance Experiment, which variable has the
greatest power in explaining health expenditures?
A. Age
B. Gender
C. Prior utilization
D. Geographic location
• Answer: C
• Rationale: Research indicates that a person’s past medical usage is the most
accurate predictor of future spending, far outweighing demographic factors.
2. Which metal level plan under the ACA is the only one where cost-sharing
subsidies are available?
A. Bronze
B. Silver
C. Gold
D. Platinum
• Answer: B
• Rationale: While premiums can be subsidized on any metal level, cost-sharing
reductions (CSRs) that lower out-of-pocket costs are legally tied to Silver-level
plans.
3. In group life insurance, the "Waiver of Premium" provision typically triggers
when:
A. An employee is laid off
,2026 UPDATED QUESTIONS DOWNLOAD
B. An employee becomes totally disabled
C. An employee reaches age 65
D. An employee works part-time
• Answer: B
• Rationale: This provision allows life insurance coverage to continue without
further premium payments if the insured becomes totally disabled before a
specific age.
4. What is the standard waiting period for Social Security Disability Income (SSDI)
benefits?
A. 3 months
B. 5 consecutive months
C. 12 months
D. 24 months
• Answer: B
• Rationale: SSDI requires a 5-month waiting period before benefits begin, and
the disability must be expected to last at least 12 months or result in death.
5. Which type of dental plan pays benefits based on a "Table of Allowances"?
A. PPO Dental
B. Scheduled Plan
C. Non-scheduled Plan
D. DHMO
• Answer: B
• Rationale: Scheduled plans list a fixed dollar amount for each procedure,
whereas non-scheduled plans pay based on "Usual, Customary, and
Reasonable" (UCR) charges.
6. "Accelerated Death Benefits" allow a terminally ill policyholder to receive:
A. A loan against the policy
B. A portion of the death benefit while still living
C. Double the death benefit if the death is accidental
D. Only the interest earned on the policy
• Answer: B
,2026 UPDATED QUESTIONS DOWNLOAD
• Rationale: This "living benefit" provides financial support for end-of-life care by
advancing a percentage of the face value.
7. A "Core-Plus" flexible benefit plan is best described as:
A. A plan where everyone receives the same benefits
B. A plan with a mandatory base of benefits and "flex credits" to buy additional coverage
C. A plan that only offers health and life insurance
D. A plan where employees pay 100% of the costs
• Answer: B
• Rationale: The "Core" represents the mandatory minimum coverage (e.g., basic
life/health), and "Plus" refers to the options employees choose using employer-
provided credits.
8. Under the ACA, a "Large Employer" is defined as one having at least how many
full-time equivalent (FTE) employees?
A. 25
B. 50
C. 100
D. 500
• Answer: B
• Rationale: The employer mandate and reporting requirements generally apply to
companies with 50 or more FTEs.
9. What is the primary difference between an HRA and an HSA?
A. Only HRAs can be funded by employees
B. Only HSAs are portable (the employee keeps the account after leaving)
C. HRAs must be paired with a High Deductible Health Plan (HDHP)
D. HSAs are only for dental and vision
• Answer: B
• Rationale: Health Reimbursement Arrangements (HRAs) are employer-owned;
Health Savings Accounts (HSAs) are individual-owned and portable.
10. "Own-Occupation" disability insurance defines disability as the inability to:
A. Perform any job for which the person is qualified
B. Perform the duties of their specific current job
, 2026 UPDATED QUESTIONS DOWNLOAD
C. Work in a sedentary environment
D. Earn more than the minimum wage
• Answer: B
• Rationale: "Own-Occ" is the most liberal definition for the claimant, paying
benefits even if they could work in a different field.
11. Which dental procedure is typically categorized as "Class II" (Basic)?
A. Routine cleanings
B. Root canals and fillings
C. Orthodontics
D. Bridges and dentures
• Answer: B
• Rationale: Class I is preventive (cleanings), Class II is basic restorative
(fillings/extractions), and Class III is major restorative (crowns/bridges).
12. In a "Modular" flex plan, employees choose from:
A. Individual line items (like a menu)
B. Pre-designed packages of benefits
C. Only two choices: High or Low coverage
D. Benefits that change every month
• Answer: B
• Rationale: Modular plans offer bundled "packages" (Module A, Module B) to
simplify choice and minimize adverse selection.
13. What is the "Elimination Period" in a Long-Term Disability (LTD) policy?
A. The time before an employee is fired
B. The time between the onset of disability and the start of benefit payments
C. The time during which the insurer can cancel the policy
D. The time it takes to process a claim
• Answer: B
• Rationale: Also called a waiting period, it is essentially a "time deductible" (e.g.,
90 or 180 days).
14. Which federal law requires that group health plans provide parity between
mental health/substance use disorder benefits and medical/surgical benefits?
A. COBRA
