CEBS GBA - Module 1 (1) Exam 2025
Questions and Answers 100% Pass
Fringe Benefits - ✔✔Addition of benefits as an offset to higher labor
Broad View - ✔✔"Virtually any form of compensation other than direct wages"
Limited (Narrow) View - ✔✔Benefits that stem from an employment relationship, not
underwritten or paid for directly by the government
Reasons for growth in Employee Benefit Plans - ✔✔Business, tax legislation, collective
bargaining, efficiency of the approach
Labor Management Relations Act (Taft Hartley Act) - ✔✔Administered by the NLRB,
requires good faith bargaining between employers and employees in the matters of
hours, wages, and working conditions.
Effect of the Industrial Revolution - ✔✔Employees started moving to employers in
Cities, the grouping of employees made it easier to cover all employees under one
contract. Employer benefits are convenient and simple.
Effect of World War II - ✔✔Wages were limited due to the government, employee
benefits were deemed as compensation.
Group Technique - ✔✔Only certain groups are eligible (a specific company's
employees), steady flow of lives (cost increases as age increases), minimum number of
lives.
COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED 1
, Functional Approach - ✔✔Organized system for analyzing audience, participants
exposure to risk, focused on employee needs, reducing company loss, and being
thoughtful of cost parameters, originated in 1967 by George C. Foust.
Risk - ✔✔Uncertainty when thinking in terms of a 'loss' (Loss referring to the insurance
of a decrease in value). Eg. Illness, death, disability, unemployment, cost of medical bills
.
Peril - ✔✔The cause of personal/property loss, destruction, or damage.
Hazard - ✔✔A condition that increases the probability of a peril occurring or that can
increase the loss in the event of a peril.
Physical Hazard - ✔✔The presence of flammable materials in absence of extinguishers,
machines without safety mechanisms, faulty heating/air conditioner units.
Moral Hazard - ✔✔Dishonest, unethical, and immoral people - those who
steal/damage company property; file fraudulent medical claims, abuse sick time, falsify
pay records or expenses
Morale Hazard - ✔✔Those that arise through a person acting careless. It can also
include the act of not securing items of value; failing to notify employees of hazards,
etc.
Pure Risk - ✔✔Either risk will happen, or will not happen. These types of risks can be
insured. Eg. sickness, accident, unemployment, disability, theft of property, etc.
Speculative Risk - ✔✔Either loss, no loss, or gain. Eg. Purchases of stock, new business
ventures, gambling. In each, one could lose, break even, or gain.
Personal Risk - ✔✔The most important risk in employee benefits. Includes death,
illness, accidents, unemployment, and old age. Can be measured with some degree of
accuracy. Potential loss can be estimated through estimates of such factors as medical
costs.
COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED 2
Questions and Answers 100% Pass
Fringe Benefits - ✔✔Addition of benefits as an offset to higher labor
Broad View - ✔✔"Virtually any form of compensation other than direct wages"
Limited (Narrow) View - ✔✔Benefits that stem from an employment relationship, not
underwritten or paid for directly by the government
Reasons for growth in Employee Benefit Plans - ✔✔Business, tax legislation, collective
bargaining, efficiency of the approach
Labor Management Relations Act (Taft Hartley Act) - ✔✔Administered by the NLRB,
requires good faith bargaining between employers and employees in the matters of
hours, wages, and working conditions.
Effect of the Industrial Revolution - ✔✔Employees started moving to employers in
Cities, the grouping of employees made it easier to cover all employees under one
contract. Employer benefits are convenient and simple.
Effect of World War II - ✔✔Wages were limited due to the government, employee
benefits were deemed as compensation.
Group Technique - ✔✔Only certain groups are eligible (a specific company's
employees), steady flow of lives (cost increases as age increases), minimum number of
lives.
COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED 1
, Functional Approach - ✔✔Organized system for analyzing audience, participants
exposure to risk, focused on employee needs, reducing company loss, and being
thoughtful of cost parameters, originated in 1967 by George C. Foust.
Risk - ✔✔Uncertainty when thinking in terms of a 'loss' (Loss referring to the insurance
of a decrease in value). Eg. Illness, death, disability, unemployment, cost of medical bills
.
Peril - ✔✔The cause of personal/property loss, destruction, or damage.
Hazard - ✔✔A condition that increases the probability of a peril occurring or that can
increase the loss in the event of a peril.
Physical Hazard - ✔✔The presence of flammable materials in absence of extinguishers,
machines without safety mechanisms, faulty heating/air conditioner units.
Moral Hazard - ✔✔Dishonest, unethical, and immoral people - those who
steal/damage company property; file fraudulent medical claims, abuse sick time, falsify
pay records or expenses
Morale Hazard - ✔✔Those that arise through a person acting careless. It can also
include the act of not securing items of value; failing to notify employees of hazards,
etc.
Pure Risk - ✔✔Either risk will happen, or will not happen. These types of risks can be
insured. Eg. sickness, accident, unemployment, disability, theft of property, etc.
Speculative Risk - ✔✔Either loss, no loss, or gain. Eg. Purchases of stock, new business
ventures, gambling. In each, one could lose, break even, or gain.
Personal Risk - ✔✔The most important risk in employee benefits. Includes death,
illness, accidents, unemployment, and old age. Can be measured with some degree of
accuracy. Potential loss can be estimated through estimates of such factors as medical
costs.
COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED 2
