GBARPA 3 Practice Exam Questions and Answers |Complete Solutions Graded A+ |100%
Correct
All the following statements of contracting issues between plan fiduciaries and plan service
providers related to privacy and data security are correct EXCEPT:
A.) The service provider should agree to cooperate with the plan fiduciary to enable the plan
fiduciary to meet its regulatory and legal obligations.
B.) The service provider's obligations for data retention, disposal and destruction should be
consistent with the plan fiduciary's regulatory obligations.
C.) As between the service provider and the plan fiduciary, the plan fiduciary is the owner of the
personal information.
D.) The plan fiduciary should be required to reimburse the service provider for expenses, costs
and the like associated with any data breach.
E.) The service provider's use of subcontractors should be subject to the plan fiduciary's
consent. D.) The plan fiduciary should be required to reimburse the service provider for
expenses, costs and the like associated with any data breach.
An employee welfare benefit plan has several basic elements. All the following are included
among these elements EXCEPT:
A.) There must be a plan, fund or program.
B.) The plan, fund or program must meet the definition contained in the Employee Retirement
Income Security Act.
C.) The plan, fund or program must be established or maintained by an employer.
D.) The plan, fund or program must be for the purpose of providing specifically listed benefits,
through the purchase of insurance or otherwise.
E.) Benefits must be provided to participants and beneficiaries. B.) The plan, fund or
program must meet the definition contained in the Employee Retirement Income Security Act.
All the following are advantages to a plan administrator of having a venue selection clause that
specifies where lawsuits may be brought and a clause that provides that a plaintiff may sue the
plan only in the district where the plan is administered EXCEPT:
,A.) There is administrative convenience to plan managers in dealing with lawsuits "at home."
B.) A consistent set of rulings from a single body of circuit case law affords greater predictability
on issues when there is a clear circuit split or even just a subtle nuance in local case law.
C.) A consistent legal environment enables the plan that covers participants in more than one
district to operate in a more consistent manner.
D.) The plan's informational materials, such as the summary plan description
(SPD), might be well- served by a consistent body of case law.
E.) The standard of judicial review will be the de novo standard, where the judge will examine
E.) The standard of judicial review will be the de novo standard, where the judge will
examine the issues without deference to prior determinations.
All the following statements regarding Summary Annual Reports (SARs) are correct EXCEPT:
A.) An SAR is considered a plan disclosure requirement under the Employee Retirement Income
Security Act (ERISA).
B.) An SAR is a summary of certain information contained in the plan's Form 5500
C.) An SAR must be filed with the Department of Labor.
D.) ERISA requires that an SAR be given to each participant, including former employees who
are still covered by the plan.
E.) An SAR does not have to be provided if the plan is totally an unfunded welfare plan under
which benefits are paid solely from the general assets of the employer or employee
organization maintaining the plan. C.) An SAR must be filed with the Department of Labor.
All the following statements regarding Social Security benefits and quarters of credit are correct
EXCEPT:
A.) Survivor benefits are only available if the deceased had attained a fully insured status.
B.) A person receives one quarter of credit for a specified amount of covered earnings.
C.) Credits can be earned any time during the year.
,D.) The amount required to earn one credit automatically increases as average wages rise.
E.) A person is fully insured if they have 40 credits. A.) Survivor benefits are only available if
the deceased had attained a fully insured status.
All the following are benefit plans typically subject to the Employee Retirement Income Security
Act EXCEPT:
A.) Unfunded excess benefit plans
B.) Scholarship funds
C.) Voluntary insurance products if the employer makes premium contributions 0 D.) Day-care
centers
E.) Apprenticeship programs A.) Unfunded excess benefit plans
All the following are cyber threats to Employee Retirement Income Security Act plans that have
been cited by various sources EXCEPT:
A.) Phishing, where fraudulent e-mails are sent with the objective of enticing the user to
interact and inadvertently provide an avenue for a cybercriminal to infiltrate a computer
network
B.) Malware via external devices, where intrusive and harmful software is stored on an external
drive and executed when that drive is inserted into a network computer
C.) Wire transfer e-mail fraud, where cybercriminals pretend to be federal regulators assessing
hefty penalties on plans and ask fiduciaries to wire transfer fines
D.) Ransomware, where cybercriminals encrypt and seize an entire hard drive and will only
release it for a high ransom
E.) Cyber breach, where an outside vendor is hacked and its credentials are used to access the
targeted resource C.) Wire transfer e-mail fraud, where cybercriminals pretend to be federal
regulators assessing hefty penalties on plans and ask fiduciaries to wire transfer fines
All the following statements regarding fraud associated with employee benefit plans are correct
EXCEPT:
, A.) Studies have shown that internal controls are by far the most common method of detecting
fraud.
B.) Auditors are more concerned with financial statement fraud than misappropriation fraud.
C.) Accounting, operations and upper management tend to be the most frequent departments
where fraudulent activity occurs.
D.) Human resources, boards of directors and legal are three of the departments where fraud
occurrences are low.
E.) Employee support programs are effective in minimizing fraud because they provide
employees with psychiatric and credit counseling at a time when they need it most-before they
commit fraud. A.) Studies have shown that internal controls are by far the most common
method of detecting fraud.
All the following statements regarding Employee Retirement Income Security Act (ERISA) plan
investments are correct EXCEPT:
A.) Mutual funds issue redeemable shares, meaning investors wishing to leave the mutual fund
can sell their shares back to the fund.
B.) Mutual funds are subject to direct regulation by ERISA.
C.) A mutual fund is required to provide appropriate disclosure documents, meaning the
fiduciaries of a participant-directed plan do not need to design customized fund descriptions for
participants.
D.) Collective investment trusts are pooled investment funds that are offered by a bank and
only to benefit plans.
E.) Closed-end funds generally do not redeem their shares. B.) Mutual funds are subject to
direct regulation by ERISA.
All the following statements regarding the benefits in Medicare Part A are correct EXCEPT:
A.) A benefit period starts when the beneficiary first enters a hospital and ends when there has
been a break of at least 60 consecutive days since inpatient hospital or skilled nursing care was
provided.
Correct
All the following statements of contracting issues between plan fiduciaries and plan service
providers related to privacy and data security are correct EXCEPT:
A.) The service provider should agree to cooperate with the plan fiduciary to enable the plan
fiduciary to meet its regulatory and legal obligations.
B.) The service provider's obligations for data retention, disposal and destruction should be
consistent with the plan fiduciary's regulatory obligations.
C.) As between the service provider and the plan fiduciary, the plan fiduciary is the owner of the
personal information.
D.) The plan fiduciary should be required to reimburse the service provider for expenses, costs
and the like associated with any data breach.
E.) The service provider's use of subcontractors should be subject to the plan fiduciary's
consent. D.) The plan fiduciary should be required to reimburse the service provider for
expenses, costs and the like associated with any data breach.
An employee welfare benefit plan has several basic elements. All the following are included
among these elements EXCEPT:
A.) There must be a plan, fund or program.
B.) The plan, fund or program must meet the definition contained in the Employee Retirement
Income Security Act.
C.) The plan, fund or program must be established or maintained by an employer.
D.) The plan, fund or program must be for the purpose of providing specifically listed benefits,
through the purchase of insurance or otherwise.
E.) Benefits must be provided to participants and beneficiaries. B.) The plan, fund or
program must meet the definition contained in the Employee Retirement Income Security Act.
All the following are advantages to a plan administrator of having a venue selection clause that
specifies where lawsuits may be brought and a clause that provides that a plaintiff may sue the
plan only in the district where the plan is administered EXCEPT:
,A.) There is administrative convenience to plan managers in dealing with lawsuits "at home."
B.) A consistent set of rulings from a single body of circuit case law affords greater predictability
on issues when there is a clear circuit split or even just a subtle nuance in local case law.
C.) A consistent legal environment enables the plan that covers participants in more than one
district to operate in a more consistent manner.
D.) The plan's informational materials, such as the summary plan description
(SPD), might be well- served by a consistent body of case law.
E.) The standard of judicial review will be the de novo standard, where the judge will examine
E.) The standard of judicial review will be the de novo standard, where the judge will
examine the issues without deference to prior determinations.
All the following statements regarding Summary Annual Reports (SARs) are correct EXCEPT:
A.) An SAR is considered a plan disclosure requirement under the Employee Retirement Income
Security Act (ERISA).
B.) An SAR is a summary of certain information contained in the plan's Form 5500
C.) An SAR must be filed with the Department of Labor.
D.) ERISA requires that an SAR be given to each participant, including former employees who
are still covered by the plan.
E.) An SAR does not have to be provided if the plan is totally an unfunded welfare plan under
which benefits are paid solely from the general assets of the employer or employee
organization maintaining the plan. C.) An SAR must be filed with the Department of Labor.
All the following statements regarding Social Security benefits and quarters of credit are correct
EXCEPT:
A.) Survivor benefits are only available if the deceased had attained a fully insured status.
B.) A person receives one quarter of credit for a specified amount of covered earnings.
C.) Credits can be earned any time during the year.
,D.) The amount required to earn one credit automatically increases as average wages rise.
E.) A person is fully insured if they have 40 credits. A.) Survivor benefits are only available if
the deceased had attained a fully insured status.
All the following are benefit plans typically subject to the Employee Retirement Income Security
Act EXCEPT:
A.) Unfunded excess benefit plans
B.) Scholarship funds
C.) Voluntary insurance products if the employer makes premium contributions 0 D.) Day-care
centers
E.) Apprenticeship programs A.) Unfunded excess benefit plans
All the following are cyber threats to Employee Retirement Income Security Act plans that have
been cited by various sources EXCEPT:
A.) Phishing, where fraudulent e-mails are sent with the objective of enticing the user to
interact and inadvertently provide an avenue for a cybercriminal to infiltrate a computer
network
B.) Malware via external devices, where intrusive and harmful software is stored on an external
drive and executed when that drive is inserted into a network computer
C.) Wire transfer e-mail fraud, where cybercriminals pretend to be federal regulators assessing
hefty penalties on plans and ask fiduciaries to wire transfer fines
D.) Ransomware, where cybercriminals encrypt and seize an entire hard drive and will only
release it for a high ransom
E.) Cyber breach, where an outside vendor is hacked and its credentials are used to access the
targeted resource C.) Wire transfer e-mail fraud, where cybercriminals pretend to be federal
regulators assessing hefty penalties on plans and ask fiduciaries to wire transfer fines
All the following statements regarding fraud associated with employee benefit plans are correct
EXCEPT:
, A.) Studies have shown that internal controls are by far the most common method of detecting
fraud.
B.) Auditors are more concerned with financial statement fraud than misappropriation fraud.
C.) Accounting, operations and upper management tend to be the most frequent departments
where fraudulent activity occurs.
D.) Human resources, boards of directors and legal are three of the departments where fraud
occurrences are low.
E.) Employee support programs are effective in minimizing fraud because they provide
employees with psychiatric and credit counseling at a time when they need it most-before they
commit fraud. A.) Studies have shown that internal controls are by far the most common
method of detecting fraud.
All the following statements regarding Employee Retirement Income Security Act (ERISA) plan
investments are correct EXCEPT:
A.) Mutual funds issue redeemable shares, meaning investors wishing to leave the mutual fund
can sell their shares back to the fund.
B.) Mutual funds are subject to direct regulation by ERISA.
C.) A mutual fund is required to provide appropriate disclosure documents, meaning the
fiduciaries of a participant-directed plan do not need to design customized fund descriptions for
participants.
D.) Collective investment trusts are pooled investment funds that are offered by a bank and
only to benefit plans.
E.) Closed-end funds generally do not redeem their shares. B.) Mutual funds are subject to
direct regulation by ERISA.
All the following statements regarding the benefits in Medicare Part A are correct EXCEPT:
A.) A benefit period starts when the beneficiary first enters a hospital and ends when there has
been a break of at least 60 consecutive days since inpatient hospital or skilled nursing care was
provided.
