CEBS GBA 1 and 2 Exam - Certified Employee Benefit
Specialist (CEBS) Group Benefits Associate - 2026/2027
Edition - 250 Questions with Evidence-Based Verified
Answers
CEBS GBA 1 & 2 Exam 2026-2027 Questions and Answers Already Graded A+. 100% Verified Solutions | Updated
Per Latest CEBS Guidelines | Graded A+
This comprehensive exam preparation document covers the core competencies required for the
Certified Employee Benefit Specialist (CEBS) Group Benefits Associate (GBA) designation. It
includes 250 evidence-based, verified questions and answers that reflect the latest 2026/2027
curriculum updates. Each question is designed to test knowledge of group benefits, retirement plans,
health and welfare plans, and regulatory compliance. This resource is ideal for candidates seeking a
thorough review and high-scoring performance on the GBA 1 and GBA 2 exams.
Key Features:
Group Benefit Plan Design and Administration
Retirement Plans: Defined Benefit and Defined Contribution
Health and Welfare Plans: Medical, Dental, Vision, and Prescription Drug
Regulatory Compliance: ERISA, HIPAA, ACA, COBRA
Funding and Financing Mechanisms for Employee Benefits
Employee Benefit Communication and Plan Governance
Updates for 2026:
- Updated to reflect 2026/2027 CEBS curriculum changes and regulatory updates
- Incorporated recent IRS and DOL rulings affecting group benefits
- Revised answer rationales to include evidence-based citations from authoritative sources
- Added new questions on emerging topics such as telemedicine and wellness programs
- Enhanced distractor explanations to clarify common misconceptions
Abstract:
This exam preparation document is meticulously crafted for candidates pursuing the Certified Employee Benefit
Specialist (CEBS) Group Benefits Associate (GBA) designation. It contains 250 evidence-based, verified questions
and answers that align with the 2026/2027 curriculum for GBA 1 and GBA 2 exams. The content spans key areas
including group benefit plan design, retirement plans, health and welfare plans, regulatory compliance, funding
mechanisms, and employee communication. Each question is accompanied by a detailed rationale that explains the
correct answer and addresses common distractors, ensuring a deep understanding of the material. The document is
updated to reflect the latest regulatory changes and industry practices, making it an essential tool for exam
success. By mastering these questions, candidates will be well-prepared to achieve a high score and earn the GBA
certification.
Keywords:
CEBS GBA exam, Group Benefits Associate, employee benefits certification, ERISA compliance, retirement plans,
health and welfare plans, ACA and COBRA, benefit plan funding
Answer Format:
Each question is followed by a correct answer and a detailed rationale that explains why the answer is correct, often
citing specific regulations or plan design principles. Distractor options are analyzed to clarify why they are
incorrect, helping to reinforce learning and prevent common mistakes.
Page 1
,Compliance Checklist:
All questions align with the 2026/2027 CEBS GBA curriculum
Answers are evidence-based and verified by subject matter experts
Rationales include citations to ERISA, HIPAA, ACA, and other relevant laws
Content covers both GBA 1 and GBA 2 exam domains
Updated to reflect recent IRS and DOL guidance
Distractor explanations address typical candidate errors
Content Area Overview:
Content Area Questions Key Topics Weight
Group Benefit Plan Design and 1-50 Plan types, eligibility, enrollment, COBRA, 20%
Administration HIPAA portability, plan documents
Retirement Plans 51-100 Defined benefit, defined contribution, 20%
401(k), vesting, funding, fiduciary
responsibilities
Health and Welfare Plans 101-150 Medical, dental, vision, prescription drug, 20%
wellness programs, telemedicine, HSA/FSA
Regulatory Compliance 151-200 ERISA, ACA, COBRA, HIPAA, Medicare 20%
coordination, state regulations
Funding and Financing 201-225 Fully insured, self-funded, stop-loss, 10%
premium rating, risk management
Communication and Governance 226-250 Summary plan descriptions, employee 10%
communication, plan governance, fiduciary
duties
Page 2
,Q1. A multinational employer with 5,000 U.S. employees is considering a self-funded group health
plan. The CFO wants to minimize risk volatility while maintaining flexibility in benefit design.
Which stop-loss insurance structure would best achieve this objective without creating adverse
selection risks?
A. Specific stop-loss only with a $50,000 deductible per claimant
B. Aggregate stop-loss only with a 125% expected claims attachment point
C. Combined specific ($100,000) and aggregate (110% expected) stop-loss with a laser provision for
high-cost claimants
D. No stop-loss; instead, purchase a level-funded plan with a 12-month contract
Correct Answer: C. Combined specific ($100,000) and aggregate (110% expected) stop-loss with a
laser provision for high-cost claimants
Rationale: A combined specific and aggregate stop-loss with a laser provision mitigates both high
individual claims and overall claims volatility. The laser provision allows the insurer to exclude or adjust
coverage for known high-cost claimants, reducing adverse selection. Option A only addresses individual
claims, leaving the employer exposed to aggregate fluctuations. Option B covers aggregate but not
individual catastrophic claims. Option D is a level-funded plan, which is essentially a self-funded
arrangement with limited stop-loss, but it does not offer the same flexibility and may have higher
premiums.
Why Wrong:
A - Specific stop-loss alone does not protect against aggregate claims volatility.
B - Aggregate stop-loss alone leaves the employer exposed to catastrophic individual claims.
D - Level-funded plans typically have higher fixed costs and less flexibility than traditional
self-funding with stop-loss.
Reference: CEBS GBA 1, Module 3: Self-Funding and Stop-Loss Insurance, 2026 Edition
Q2. Under ERISA, which of the following is true regarding the preemption of state law for employee
benefit plans?
A. ERISA preempts all state laws that relate to any employee benefit plan, including laws of general
applicability.
B. ERISA preempts state laws that relate to employee benefit plans, but savings clause exceptions
preserve state insurance, banking, and securities laws.
C. ERISA does not preempt state laws that regulate the business of insurance, even if they relate to
benefit plans.
D. ERISA preempts state laws only to the extent that they conflict with specific ERISA provisions.
Correct Answer: B. ERISA preempts state laws that relate to employee benefit plans, but savings
clause exceptions preserve state insurance, banking, and securities laws.
Rationale: ERISA's preemption clause broadly preempts state laws that 'relate to' employee benefit plans.
However, the savings clause exempts state laws that regulate insurance, banking, or securities. Option B
correctly captures this nuance. Option A is too broad because laws of general applicability that do not
specifically relate to benefit plans may survive preemption. Option C is incorrect because the savings
clause applies only to laws that regulate insurance, not all laws that relate to benefit plans. Option D
describes conflict preemption, which is narrower than ERISA's express preemption.
Why Wrong:
A - ERISA does not preempt all state laws of general applicability; it only preempts those that 'relate
to' employee benefit plans.
C - The savings clause preserves state insurance laws, but only if they regulate the business of
insurance, not all laws that relate to benefit plans.
Page 3
, D - ERISA preemption is express and broader than conflict preemption; it does not require a direct
conflict.
Reference: CEBS GBA 2, Module 1: ERISA and State Law Preemption, 2026 Edition
Page 4
Specialist (CEBS) Group Benefits Associate - 2026/2027
Edition - 250 Questions with Evidence-Based Verified
Answers
CEBS GBA 1 & 2 Exam 2026-2027 Questions and Answers Already Graded A+. 100% Verified Solutions | Updated
Per Latest CEBS Guidelines | Graded A+
This comprehensive exam preparation document covers the core competencies required for the
Certified Employee Benefit Specialist (CEBS) Group Benefits Associate (GBA) designation. It
includes 250 evidence-based, verified questions and answers that reflect the latest 2026/2027
curriculum updates. Each question is designed to test knowledge of group benefits, retirement plans,
health and welfare plans, and regulatory compliance. This resource is ideal for candidates seeking a
thorough review and high-scoring performance on the GBA 1 and GBA 2 exams.
Key Features:
Group Benefit Plan Design and Administration
Retirement Plans: Defined Benefit and Defined Contribution
Health and Welfare Plans: Medical, Dental, Vision, and Prescription Drug
Regulatory Compliance: ERISA, HIPAA, ACA, COBRA
Funding and Financing Mechanisms for Employee Benefits
Employee Benefit Communication and Plan Governance
Updates for 2026:
- Updated to reflect 2026/2027 CEBS curriculum changes and regulatory updates
- Incorporated recent IRS and DOL rulings affecting group benefits
- Revised answer rationales to include evidence-based citations from authoritative sources
- Added new questions on emerging topics such as telemedicine and wellness programs
- Enhanced distractor explanations to clarify common misconceptions
Abstract:
This exam preparation document is meticulously crafted for candidates pursuing the Certified Employee Benefit
Specialist (CEBS) Group Benefits Associate (GBA) designation. It contains 250 evidence-based, verified questions
and answers that align with the 2026/2027 curriculum for GBA 1 and GBA 2 exams. The content spans key areas
including group benefit plan design, retirement plans, health and welfare plans, regulatory compliance, funding
mechanisms, and employee communication. Each question is accompanied by a detailed rationale that explains the
correct answer and addresses common distractors, ensuring a deep understanding of the material. The document is
updated to reflect the latest regulatory changes and industry practices, making it an essential tool for exam
success. By mastering these questions, candidates will be well-prepared to achieve a high score and earn the GBA
certification.
Keywords:
CEBS GBA exam, Group Benefits Associate, employee benefits certification, ERISA compliance, retirement plans,
health and welfare plans, ACA and COBRA, benefit plan funding
Answer Format:
Each question is followed by a correct answer and a detailed rationale that explains why the answer is correct, often
citing specific regulations or plan design principles. Distractor options are analyzed to clarify why they are
incorrect, helping to reinforce learning and prevent common mistakes.
Page 1
,Compliance Checklist:
All questions align with the 2026/2027 CEBS GBA curriculum
Answers are evidence-based and verified by subject matter experts
Rationales include citations to ERISA, HIPAA, ACA, and other relevant laws
Content covers both GBA 1 and GBA 2 exam domains
Updated to reflect recent IRS and DOL guidance
Distractor explanations address typical candidate errors
Content Area Overview:
Content Area Questions Key Topics Weight
Group Benefit Plan Design and 1-50 Plan types, eligibility, enrollment, COBRA, 20%
Administration HIPAA portability, plan documents
Retirement Plans 51-100 Defined benefit, defined contribution, 20%
401(k), vesting, funding, fiduciary
responsibilities
Health and Welfare Plans 101-150 Medical, dental, vision, prescription drug, 20%
wellness programs, telemedicine, HSA/FSA
Regulatory Compliance 151-200 ERISA, ACA, COBRA, HIPAA, Medicare 20%
coordination, state regulations
Funding and Financing 201-225 Fully insured, self-funded, stop-loss, 10%
premium rating, risk management
Communication and Governance 226-250 Summary plan descriptions, employee 10%
communication, plan governance, fiduciary
duties
Page 2
,Q1. A multinational employer with 5,000 U.S. employees is considering a self-funded group health
plan. The CFO wants to minimize risk volatility while maintaining flexibility in benefit design.
Which stop-loss insurance structure would best achieve this objective without creating adverse
selection risks?
A. Specific stop-loss only with a $50,000 deductible per claimant
B. Aggregate stop-loss only with a 125% expected claims attachment point
C. Combined specific ($100,000) and aggregate (110% expected) stop-loss with a laser provision for
high-cost claimants
D. No stop-loss; instead, purchase a level-funded plan with a 12-month contract
Correct Answer: C. Combined specific ($100,000) and aggregate (110% expected) stop-loss with a
laser provision for high-cost claimants
Rationale: A combined specific and aggregate stop-loss with a laser provision mitigates both high
individual claims and overall claims volatility. The laser provision allows the insurer to exclude or adjust
coverage for known high-cost claimants, reducing adverse selection. Option A only addresses individual
claims, leaving the employer exposed to aggregate fluctuations. Option B covers aggregate but not
individual catastrophic claims. Option D is a level-funded plan, which is essentially a self-funded
arrangement with limited stop-loss, but it does not offer the same flexibility and may have higher
premiums.
Why Wrong:
A - Specific stop-loss alone does not protect against aggregate claims volatility.
B - Aggregate stop-loss alone leaves the employer exposed to catastrophic individual claims.
D - Level-funded plans typically have higher fixed costs and less flexibility than traditional
self-funding with stop-loss.
Reference: CEBS GBA 1, Module 3: Self-Funding and Stop-Loss Insurance, 2026 Edition
Q2. Under ERISA, which of the following is true regarding the preemption of state law for employee
benefit plans?
A. ERISA preempts all state laws that relate to any employee benefit plan, including laws of general
applicability.
B. ERISA preempts state laws that relate to employee benefit plans, but savings clause exceptions
preserve state insurance, banking, and securities laws.
C. ERISA does not preempt state laws that regulate the business of insurance, even if they relate to
benefit plans.
D. ERISA preempts state laws only to the extent that they conflict with specific ERISA provisions.
Correct Answer: B. ERISA preempts state laws that relate to employee benefit plans, but savings
clause exceptions preserve state insurance, banking, and securities laws.
Rationale: ERISA's preemption clause broadly preempts state laws that 'relate to' employee benefit plans.
However, the savings clause exempts state laws that regulate insurance, banking, or securities. Option B
correctly captures this nuance. Option A is too broad because laws of general applicability that do not
specifically relate to benefit plans may survive preemption. Option C is incorrect because the savings
clause applies only to laws that regulate insurance, not all laws that relate to benefit plans. Option D
describes conflict preemption, which is narrower than ERISA's express preemption.
Why Wrong:
A - ERISA does not preempt all state laws of general applicability; it only preempts those that 'relate
to' employee benefit plans.
C - The savings clause preserves state insurance laws, but only if they regulate the business of
insurance, not all laws that relate to benefit plans.
Page 3
, D - ERISA preemption is express and broader than conflict preemption; it does not require a direct
conflict.
Reference: CEBS GBA 2, Module 1: ERISA and State Law Preemption, 2026 Edition
Page 4
