CEBS GBA 2 PRACTICE EXAM 100
QUESTIONS AND VERIFIED ANSWERS
ALREADY GRADED A+ 2026-2027.
All the following are major requirements of a qualified long-term care (LTC)
policy EXCEPT:
A.) The policy must only provide coverage for qualified LTC services.
B.) The policy must provide a cash surrender value or other money that can
be paid, assigned, or pledged as collateral for a loan.
C.) The policy must be guaranteed renewable.
D.) The policy must provide that all policyholder dividends and premium
refunds be applied against future premiums or to increase benefits.
E.) The policy must provide certain consumer protection provisions. -
ANSWER-B.) The policy must provide a cash surrender value or other money
that can be paid, assigned, or pledged as collateral for a loan.
,All of the following are underwriting methods used in health insurance
EXCEPT:
A.) Adjusted community rating
B.) Retrospective experience rating
C.) Community rating by class
D.) Administrative rating
E.) Prospective experience rating - ANSWER-D.) Administrative rating
All the following are reasons why insurance companies have been dissatisfied
with the long term care (LTC) insurance product structure EXCEPT:
A.) The use of unisex rates, which insurers would prefer, has been prohibited.
,B.) LTC insurers have been subject to reinvestment risk because interest rates
have been low for so long and insurers have been forced to invest cash flows
from expiring assets at rates lower than what they have assumed.
C.) Insurers have been concerned that the Genetic Information
Nondiscrimination Act (GINA) may prevent the use of genetic information for
underwriting, but potential policyholders may have this personal information,
thereby creating a situation for adverse selection.
D.) Insurers have been concerned about the negative consequences when
applying for rate increases.
E.) Insurers find it difficult to objectively specify claim criteria due to the
complexity of disability. - ANSWER-A.) The use of unisex rates, which insurers
would prefer, has been prohibited.
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) - ANSWER-B.) 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
QUESTIONS AND VERIFIED ANSWERS
ALREADY GRADED A+ 2026-2027.
All the following are major requirements of a qualified long-term care (LTC)
policy EXCEPT:
A.) The policy must only provide coverage for qualified LTC services.
B.) The policy must provide a cash surrender value or other money that can
be paid, assigned, or pledged as collateral for a loan.
C.) The policy must be guaranteed renewable.
D.) The policy must provide that all policyholder dividends and premium
refunds be applied against future premiums or to increase benefits.
E.) The policy must provide certain consumer protection provisions. -
ANSWER-B.) The policy must provide a cash surrender value or other money
that can be paid, assigned, or pledged as collateral for a loan.
,All of the following are underwriting methods used in health insurance
EXCEPT:
A.) Adjusted community rating
B.) Retrospective experience rating
C.) Community rating by class
D.) Administrative rating
E.) Prospective experience rating - ANSWER-D.) Administrative rating
All the following are reasons why insurance companies have been dissatisfied
with the long term care (LTC) insurance product structure EXCEPT:
A.) The use of unisex rates, which insurers would prefer, has been prohibited.
,B.) LTC insurers have been subject to reinvestment risk because interest rates
have been low for so long and insurers have been forced to invest cash flows
from expiring assets at rates lower than what they have assumed.
C.) Insurers have been concerned that the Genetic Information
Nondiscrimination Act (GINA) may prevent the use of genetic information for
underwriting, but potential policyholders may have this personal information,
thereby creating a situation for adverse selection.
D.) Insurers have been concerned about the negative consequences when
applying for rate increases.
E.) Insurers find it difficult to objectively specify claim criteria due to the
complexity of disability. - ANSWER-A.) The use of unisex rates, which insurers
would prefer, has been prohibited.
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) - ANSWER-B.) 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
