CEBS - GBA 1 - Practice Exam Complete
Test, Practice Questions, Verified Answer
Key, and Study Guide for (Latest 2026
Edition)
Which of the following statements correctly describes minimum requirements that group
benefit plans typically must meet in order to be prospectively rated on contract renewal?
-CORRECTANSWER The more unpredictable the event that will trigger a claim, the
larger the minimum group size and premium requirements
Which of the following statements correctly describes the term graduation as it applies
to mortality tables? -CORRECTANSWER It is a mathematical process that removes
anomalies that should not appear in the mortality data
If the plan sponsor pays the premium, which of the following group insured benefits is
taxable to the plan member? -CORRECTANSWER Long-term disability (LTD)
Which of the following statements correctly describes phases of a group plan
marketing? -CORRECTANSWER Plan features of both contributory and
noncontributory benefit plans must be communicated to plan members during the
enrollment process
,Which of the following statements correctly describes a characteristic of an insurable
risk? -CORRECTANSWER The loss must have financial significance to the insured
(The loss must not be catastrophic to the insurer. Option C: The loss must occur by
chance. Option D: The loss must be predictable for the insurer.)
With respect to marketing a group insurance plan, which of the following statements
best describes insurer representatives known as account executives? -
CORRECTANSWER They are involved in enrolling group members and installing new
plans
Which of the following statements correctly describes the statistical concept known as
the law of large numbers? -CORRECTANSWER Future probabilities of loss are not
valid unless a large number of incidents exist to ensure the outcomes are less likely to
deviate
Which of the following statements correctly describes an insured plan that is insurer-
administered? -CORRECTANSWER For self-insured plans with an administrative
services only (ASO) arrangement, the insurer bills the plan sponsor monthly for
administration fees
If the probability that an individual will live one year is 0.95 and the probability of dying in
the following year is 0.10, what is the probability that an individual will survive both
, years? -CORRECTANSWER 0.855 (P (Survive both years) = (0.95) x (1 - 0.1) = 0.95 x
0.90 = 0.855.)
Which of the following statements correctly describes the group benefits enrollment
process for new employees? -CORRECTANSWER An employee can enroll in the plan
any time between his or her date of hire and the end of a waiting period
A type of service offered under a third-party administrators (TPAs) claims settlement
only arrangement is: -CORRECTANSWER Adjudicating and paying claims
Unless otherwise specified in the group insurance contract, a plan member's status
under a group benefits plan terminates the earliest at which: -CORRECTANSWER The
plan member retires (Unless otherwise specified in the group insurance contract, the
order in which coverage terminates is effective the earliest date the plan member
retires, the plan member's service with the plan sponsor is terminated, the plan member
ceases active work, and the plan member is no longer a member of an eligible class
and premium payments stop.)
Which of the following statements correctly describes eligibility requirements under most
group insurance plans? -CORRECTANSWER Unmarried children under a specified age
and dependent on the plan member for support are eligible for coverage
Test, Practice Questions, Verified Answer
Key, and Study Guide for (Latest 2026
Edition)
Which of the following statements correctly describes minimum requirements that group
benefit plans typically must meet in order to be prospectively rated on contract renewal?
-CORRECTANSWER The more unpredictable the event that will trigger a claim, the
larger the minimum group size and premium requirements
Which of the following statements correctly describes the term graduation as it applies
to mortality tables? -CORRECTANSWER It is a mathematical process that removes
anomalies that should not appear in the mortality data
If the plan sponsor pays the premium, which of the following group insured benefits is
taxable to the plan member? -CORRECTANSWER Long-term disability (LTD)
Which of the following statements correctly describes phases of a group plan
marketing? -CORRECTANSWER Plan features of both contributory and
noncontributory benefit plans must be communicated to plan members during the
enrollment process
,Which of the following statements correctly describes a characteristic of an insurable
risk? -CORRECTANSWER The loss must have financial significance to the insured
(The loss must not be catastrophic to the insurer. Option C: The loss must occur by
chance. Option D: The loss must be predictable for the insurer.)
With respect to marketing a group insurance plan, which of the following statements
best describes insurer representatives known as account executives? -
CORRECTANSWER They are involved in enrolling group members and installing new
plans
Which of the following statements correctly describes the statistical concept known as
the law of large numbers? -CORRECTANSWER Future probabilities of loss are not
valid unless a large number of incidents exist to ensure the outcomes are less likely to
deviate
Which of the following statements correctly describes an insured plan that is insurer-
administered? -CORRECTANSWER For self-insured plans with an administrative
services only (ASO) arrangement, the insurer bills the plan sponsor monthly for
administration fees
If the probability that an individual will live one year is 0.95 and the probability of dying in
the following year is 0.10, what is the probability that an individual will survive both
, years? -CORRECTANSWER 0.855 (P (Survive both years) = (0.95) x (1 - 0.1) = 0.95 x
0.90 = 0.855.)
Which of the following statements correctly describes the group benefits enrollment
process for new employees? -CORRECTANSWER An employee can enroll in the plan
any time between his or her date of hire and the end of a waiting period
A type of service offered under a third-party administrators (TPAs) claims settlement
only arrangement is: -CORRECTANSWER Adjudicating and paying claims
Unless otherwise specified in the group insurance contract, a plan member's status
under a group benefits plan terminates the earliest at which: -CORRECTANSWER The
plan member retires (Unless otherwise specified in the group insurance contract, the
order in which coverage terminates is effective the earliest date the plan member
retires, the plan member's service with the plan sponsor is terminated, the plan member
ceases active work, and the plan member is no longer a member of an eligible class
and premium payments stop.)
Which of the following statements correctly describes eligibility requirements under most
group insurance plans? -CORRECTANSWER Unmarried children under a specified age
and dependent on the plan member for support are eligible for coverage
