CEBS - GBA 1 - Module 1 Exam 2025
Questions and Answers 100% Pass
Group benefits plan - ✔✔Any type of plan that provides benefits to plan members as
one group, independent of government-sponsored benefits
Speculative risk - ✔✔A type of risk that is assumed as a conscious choice, with 3
possible outcomes: loss, gain, or no change
Pure risk - ✔✔Risk that is related to events outside the risk taker's control, with loss as
the only possible outcome
Personal risks - ✔✔Risk arising from the possibility of death, poor health, or outliving
one's savings
Loss rate - ✔✔For a given group of insureds, the number and timing of covered losses
that will occur in that group
Contract of indemnity - ✔✔A non-insurance transfer of risk arrangement that includes a
hold harmless agreement exempting a party from liability it would otherwise be
responsible for
Valued contract - ✔✔A type of insurance contract where the amount payable when a
loss occurs is specified in advance, regardless of the actual amount of the loss
Adverse selection - ✔✔The tendency of individuals with a greater-than-average
likelihood of loss to seek insurance protection to a greater extent than those with an
average or less-than-average likelihood of loss
COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED 1
Questions and Answers 100% Pass
Group benefits plan - ✔✔Any type of plan that provides benefits to plan members as
one group, independent of government-sponsored benefits
Speculative risk - ✔✔A type of risk that is assumed as a conscious choice, with 3
possible outcomes: loss, gain, or no change
Pure risk - ✔✔Risk that is related to events outside the risk taker's control, with loss as
the only possible outcome
Personal risks - ✔✔Risk arising from the possibility of death, poor health, or outliving
one's savings
Loss rate - ✔✔For a given group of insureds, the number and timing of covered losses
that will occur in that group
Contract of indemnity - ✔✔A non-insurance transfer of risk arrangement that includes a
hold harmless agreement exempting a party from liability it would otherwise be
responsible for
Valued contract - ✔✔A type of insurance contract where the amount payable when a
loss occurs is specified in advance, regardless of the actual amount of the loss
Adverse selection - ✔✔The tendency of individuals with a greater-than-average
likelihood of loss to seek insurance protection to a greater extent than those with an
average or less-than-average likelihood of loss
COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED 1
