CEBS GBA 2 Practice Exam Questions
with Correct Answers Latest update
2025/2026 GRADED A+
According to the RAND Health Insurance Experiment, which variable has the greatest
power in explaining health expenditures?
A.) Welfare eligibility
B.) Prior utilization
C.) Physical health (based on self-reported measures)
D.) General health (based on self-reported measures)
E.) Mental health (based on self-reported measures) - correct answerB.) Prior
utilization
A provision in some group life insurance plans that provides for the payment of all or
part of the death benefit in the event of the insured's terminal illness is called:
A.) Accelerated death benefits
B.) Waiver of premiums
C.) Maturity value benefits
D.) Continuation-of-protection
E.) Assignment - correct answerA.) Accelerated death benefits
What reasons are given for the Silver plan being a popular choice among all the
Affordable Care Act (ACA) health plans?
A.) The Silver plan has the greatest actuarial value of all the plans.
B.) Cost-sharing subsidies to lower out-of-pocket costs are available only to people
who select the Silver plan.
C.) The Silver plan has the greatest benefits, even more than the Gold and Platinum
plans.
D.) The Silver plan has the lowest out-of-pocket costs of any plan even before any
subsidies.
E.) Many people select the Silver plan because they are not eligible for the Gold or
Platinum plans. - correct answerB.) Cost-sharing subsidies to lower out-of-pocket costs
are available only to people who select the Silver plan.
Which of the following measures of cost is generally used by analysts when they are
examining the impact of insurance premiums on employees' choice of health insurance
plans?
,A.) The loading percentage
B.) The total gross premium
C.) The insurer's profit
D.) The employee's out-of-pocket price
E.) The expected future gross premium - correct answerD.) The employee's out-of-
pocket price
Which of the following statements regarding recognition as a patient-centered medical
home (PCMH) is correct?
A.) The only organization that can officially recognize a PCMH is the Federally Qualified
Health Center Demonstration.
B.) The only organization that can officially recognize a PCMH is the National
Committee for Quality Assurance (NCQA).
C.) No single organization is responsible for recognizing PCMHs.
D.) The main organization that recognizes PCMHs is the Joint Commission and the
Accreditation Commission for Health Care.
E.) A PCMH can be recognized only by the state in which it is domiciled. - correct
answerC.) No single organization is responsible for recognizing PCMHs.
Which of the following statements regarding private health insurance exchanges and
Small Business Health Options Program (SHOP) exchanges is correct?
A.) A lot of evidence has been produced to show that private exchanges have been
designed to make it easier for small business to self-insure.
B.) The income tax incentives previously provided to small employers in the SHOP
program have expired.
C.) Recently states were given the option of making SHOP exchanges mandatory for
all employers with fewer than 200 employees.
D.) Private exchanges could affect SHOP exchanges by siphoning enrollment from
them and thereby reducing revenue (administrative fees) critical to SHOPs' financial
viability.
E.) Unlike private exchanges, SHOP exchanges do not have the ability to offer small
employers a number of plan choices. - correct answerD.) Private exchanges could
affect SHOP exchanges by siphoning enrollment from them and thereby reducing
revenue (administrative fees) critical to SHOPs' financial viability.
What is the waiting period for Social Security Disability Income (SSDI) benefits?
A.) One month
B.) Three consecutive months
C.) Five consecutive months
D.) Six consecutive months
E.) Twelve consecutive months - correct answerC.) Five consecutive months
, "Desktop medicine" is a fully integrated approach using information technology whose
primary goal is to:
A.) Recruit prospective health plan subscribers
B.) Help track patients through their plan of care
C.) Encourage patient self-diagnosis using the Internet
D.) Gather health status metrics for large patient populations
E.) Expedite health provider use of technology - correct answerB.) Help track patients
through their plan of care
Until now, the biggest source of cost savings with private health insurance exchanges
has been:
A.) Transition to the defined contribution approach
B.) Increased use of technology
C.) Employees choosing less generous plans
D.) Better health education of employees
E.) Elimination or reduction in administrative waste - correct answerC.) Employees
choosing less generous plans
Out-of-network health care accounts for approximately what percentage of total covered
health insurance expenses?
A.) 3
B.) 10
C.) 20
D.) 25
E.) 30 - correct answerB.) 10
The major advantage of term insurance for the policyowner is the fact that:
A.) A substantial amount of life insurance can be purchased for relatively modest
premiums
B.) It provides lifetime protection if the insured continues to pay the premiums
C.) The premiums remain at the same level for the life of the insured
D.) With a policy rider it can be used to provide retirement
E.) Premiums are highly competitive especially for those at older ages - correct
answerA.) A substantial amount of life insurance can be purchased for relatively modest
premiums
Mr. Smith is insured in his company's group life insurance plan. The plan is
noncontributory and meets the requirements of Internal Revenue Code Section 79. How
much group life insurance can be provided to Mr. Smith without him incurring a federal
income tax liability on the value of his employer's contributions?
A.) 0
with Correct Answers Latest update
2025/2026 GRADED A+
According to the RAND Health Insurance Experiment, which variable has the greatest
power in explaining health expenditures?
A.) Welfare eligibility
B.) Prior utilization
C.) Physical health (based on self-reported measures)
D.) General health (based on self-reported measures)
E.) Mental health (based on self-reported measures) - correct answerB.) Prior
utilization
A provision in some group life insurance plans that provides for the payment of all or
part of the death benefit in the event of the insured's terminal illness is called:
A.) Accelerated death benefits
B.) Waiver of premiums
C.) Maturity value benefits
D.) Continuation-of-protection
E.) Assignment - correct answerA.) Accelerated death benefits
What reasons are given for the Silver plan being a popular choice among all the
Affordable Care Act (ACA) health plans?
A.) The Silver plan has the greatest actuarial value of all the plans.
B.) Cost-sharing subsidies to lower out-of-pocket costs are available only to people
who select the Silver plan.
C.) The Silver plan has the greatest benefits, even more than the Gold and Platinum
plans.
D.) The Silver plan has the lowest out-of-pocket costs of any plan even before any
subsidies.
E.) Many people select the Silver plan because they are not eligible for the Gold or
Platinum plans. - correct answerB.) Cost-sharing subsidies to lower out-of-pocket costs
are available only to people who select the Silver plan.
Which of the following measures of cost is generally used by analysts when they are
examining the impact of insurance premiums on employees' choice of health insurance
plans?
,A.) The loading percentage
B.) The total gross premium
C.) The insurer's profit
D.) The employee's out-of-pocket price
E.) The expected future gross premium - correct answerD.) The employee's out-of-
pocket price
Which of the following statements regarding recognition as a patient-centered medical
home (PCMH) is correct?
A.) The only organization that can officially recognize a PCMH is the Federally Qualified
Health Center Demonstration.
B.) The only organization that can officially recognize a PCMH is the National
Committee for Quality Assurance (NCQA).
C.) No single organization is responsible for recognizing PCMHs.
D.) The main organization that recognizes PCMHs is the Joint Commission and the
Accreditation Commission for Health Care.
E.) A PCMH can be recognized only by the state in which it is domiciled. - correct
answerC.) No single organization is responsible for recognizing PCMHs.
Which of the following statements regarding private health insurance exchanges and
Small Business Health Options Program (SHOP) exchanges is correct?
A.) A lot of evidence has been produced to show that private exchanges have been
designed to make it easier for small business to self-insure.
B.) The income tax incentives previously provided to small employers in the SHOP
program have expired.
C.) Recently states were given the option of making SHOP exchanges mandatory for
all employers with fewer than 200 employees.
D.) Private exchanges could affect SHOP exchanges by siphoning enrollment from
them and thereby reducing revenue (administrative fees) critical to SHOPs' financial
viability.
E.) Unlike private exchanges, SHOP exchanges do not have the ability to offer small
employers a number of plan choices. - correct answerD.) Private exchanges could
affect SHOP exchanges by siphoning enrollment from them and thereby reducing
revenue (administrative fees) critical to SHOPs' financial viability.
What is the waiting period for Social Security Disability Income (SSDI) benefits?
A.) One month
B.) Three consecutive months
C.) Five consecutive months
D.) Six consecutive months
E.) Twelve consecutive months - correct answerC.) Five consecutive months
, "Desktop medicine" is a fully integrated approach using information technology whose
primary goal is to:
A.) Recruit prospective health plan subscribers
B.) Help track patients through their plan of care
C.) Encourage patient self-diagnosis using the Internet
D.) Gather health status metrics for large patient populations
E.) Expedite health provider use of technology - correct answerB.) Help track patients
through their plan of care
Until now, the biggest source of cost savings with private health insurance exchanges
has been:
A.) Transition to the defined contribution approach
B.) Increased use of technology
C.) Employees choosing less generous plans
D.) Better health education of employees
E.) Elimination or reduction in administrative waste - correct answerC.) Employees
choosing less generous plans
Out-of-network health care accounts for approximately what percentage of total covered
health insurance expenses?
A.) 3
B.) 10
C.) 20
D.) 25
E.) 30 - correct answerB.) 10
The major advantage of term insurance for the policyowner is the fact that:
A.) A substantial amount of life insurance can be purchased for relatively modest
premiums
B.) It provides lifetime protection if the insured continues to pay the premiums
C.) The premiums remain at the same level for the life of the insured
D.) With a policy rider it can be used to provide retirement
E.) Premiums are highly competitive especially for those at older ages - correct
answerA.) A substantial amount of life insurance can be purchased for relatively modest
premiums
Mr. Smith is insured in his company's group life insurance plan. The plan is
noncontributory and meets the requirements of Internal Revenue Code Section 79. How
much group life insurance can be provided to Mr. Smith without him incurring a federal
income tax liability on the value of his employer's contributions?
A.) 0
