CEBS GBA1 Exam Questions and Answers 100% Pass

CEBS GBA1 Exam Questions and Answers 100% Pass Broad view of employee benefits - Any form of compensation other than direct wages paid to employees Narrow view of employee benefits - Any form of compensation other than direct wages that results from the employment relationship that is not underwritten or paid by the government Social Security, Medicare, unemployment insurance, workers compensation - A legally mandated benefit paid by the employer that is excluded in the narrow view Inland Steel - A 1948 NLRB legal case that stipulated the duty to bargain in good faith over wages; also included insurance and fringe benefits such as pension W.W. Cross & Co. v. National Labor Relations Board - A NLRB case that ruled that 'wages' in good faith bargaining include health and accident plans Taft-Hartley Act - An alternative name for the Labor Management Relations Act Labor Management Relations Act - This act set the framework for good-faith collective bargaining over wages, hours, working conditions, terms of employment, and benefits Categories of persons covered by employee benefit plans - A stipulation of categories of individuals that will be covered in a benefit plan. Categories can be based on employment status and dependent status. 2COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED Non-contributory benefit plans - A benefit funding option where the employer pays all the cost Contributory benefit plans - A benefit funding approach where the employer and employees share the cost Functional approach - A systematic method of analysis of an employer's benefit program that analyzes the program's ability to meet participants' needs, manage loss exposures, and fit compensation and cost parameters Total compensation philosophy - A program that includes all types of employer- offered compensation, long-term incentives, and employee benefits Compensation/service-oriented philosophy - A benefit philosophy that ties salary or pay levels of employees to their tenure Benefits/needs-oriented approach - A benefit philosophy where the employer focuses on the needs of the participants Serious loss exposures - Disability, death, and property damage insurance can all be provided to employees to prevent what? Replacement ratio - The formula used to determine the level of retirement or disability pay an employee may receive expressed as a percentage Protection-orientated benefits - Benefits that are provided to protect employees and dependents against financial loss including life insurance and disability income have this type of orientation Accumulation-oriented benefits - What type of orientation do pension plans, profit- sharing plans, and other savings-type plans that reward employees for length of service have? 3COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED Risk - Uncertainty of the actual number and value of claims a benefits plan will incur Peril - The cause of a loss, such as a fire or car accident Hazard - A condition or action that increases the probability that a peril will occur Physical hazard - Behavior such as failure to replace the machine guards on manufacturing equipment is this type of hazard Moral hazard - A person who shops multiple doctors to get more opioids prescribed is this type of hazard Morale hazard - The act of not flossing one's teeth regularly after getting dental insurance is this type of hazard Pure risks - The type of risk with only 2 alternatives: financial loss or no financial loss Speculative risks - The type of risk that can have 3 outcomes: loss, no loss, or gain Avoidance - A risk handling technique where the risk is not assumed Control - A risk handling technique that involves an action or mechanism to reduce the probability or severity of a loss Retention - A risk handling technique where risk is assumed and paid for by the person suffering the loss Transfer - A risk handling technique where one shifts the potential for financial harm to another party Insurance - A risk handling technique where the potential for financial loss is shifted to an insurer 4COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED Insurance - A mechanism where the employee or employer pays money into a fund to cover any insurance of loss Indemnification - Process in insurance that works to make the victim of a loss whole again Loading - Administrative overhead costs such as office costs, commission, taxes, licensing taxes, and load adjustments Law of large numbers - The greater the number of exposures, the more closely the actual results will approach the probable results Insurable risk - With a large number of homogenous units, losses can be verified and measured. Losses should not be catastrophic. Avoidance - The risk-handling