CEBS GBA 1 Exam Study Guide –
Practice Questions with Verified
Answers. GRADED A+. Latest
2026/2027 Update
A prescription drug rebate occurs when: - answer✔✔ - There is an agreement
between a pharmacy benefit manager and a drug manufacturer.
The concept designed to make victims of losses whole again reflect the principle
of: - answer✔✔ - Indemnification
The design of any employee benefit plan should start with deciding: -
answer✔✔ - What are the overall objectives of the plan.
A peril as the term applies to the insurance mechanism is defined as: -
answer✔✔ - The cause of loss
A healthcare plan that has no restrictions on a member's choice of provider, no
,"steerage," and no basic utilization management is known as: - CorrECt
ANSwErIndemnity plan
The legislation that plays a fundamentally important role in protecting sensitive
patient information gathered during behavioral treatment is: - CorrECt
ANSwErHealth Insurance Portability and Accountability Act (HIPAA)
A dental plan in which certain procedures are reimbursed on a scheduled basis
and others are reimbursed on a nonscheduled basis is called a(n): - answer✔✔ -
Combination plan
Regarding return on investment (ROI) evaluations and calculations, ROI
evaluations usually: - answer✔✔ - Only consider the payback for the investor in
terms of the money they get back for the money they put in.
A behavioral health care carve-out program usually operates under a separate
contract and from a separate company known as: - answer✔✔ - a Managed
Behavioral Health Care Organization (MBHO)
There can be great variability in employer spending to sponsor a workplace
wellness program. The cost of these programs per employee per year typically
ranges from: - answer✔✔ - $0-$450
Regarding employee benefit planning, the functional approach is: - answer✔✔ -
,Compatible with both the compensation/service oriented benefit philosophy
and the needs-oriented benefit philosophy
The landmark "Inland Steel Case" had extreme importance because it: -
answer✔✔ - Stated the employer had the duty to bargain in good faith over
wages which also included insurance and fringe benefits
Money forfeited by employees under the use-it-or-lose-it rule in cafeteria plans
is called an experience gain. These experience gains may not be: - CorrECt
ANSwErReturned to the employees who incurred the forfeitures.
They may be:
- retained by the employer
- used to reduce admin expenses
- used to reduce employer's required salary reduction amounts
- donated to charity
Numerous studies have examined the effectiveness of workplace wellness
programs in promoting health or preventing disease. How effective are they
proven to be based on the studies? - answer✔✔ - These programs have had
limited evidence of their effectiveness.
Generally in a premium conversion cafeteria plan: - answer✔✔ - There are no
employer contributions.
, The "managed care backlash" of the late 1990s created significant growth in
which of the following types of health care organizations? - answer✔✔ -
Preferred Provider Organizations (PPOs)
For a cafeteria plan to be afforded favorable tax treatment, the plan must allow
participants to choose between how many benefits consisting of cash (or a
taxable benefit that is treated as cash) and qualified benefits? - answer✔✔ - Two
or more
The maximum annual contribution that can be made to a health savings account
(HSA) is: - answer✔✔ - A flat dollar amount for individuals and a flat dollar
amount for families
When a participant of a cafeteria plan makes a one-time election on coverage
that stays in force from plan year to plan year unless the participant elects to
make a change during the applicable election period, it is referred to as a(n): -
answer✔✔ - Evergreen election
Which risk-handling techniques are being used by a firm that decides to not
produce a dangerous chemical, to purchase insurance with a $10,000 deductible
on its assets and to install a fire sprinkler system throughout the plant? - CorrECt
ANSwErAvoidance, retention, insurance and control
Practice Questions with Verified
Answers. GRADED A+. Latest
2026/2027 Update
A prescription drug rebate occurs when: - answer✔✔ - There is an agreement
between a pharmacy benefit manager and a drug manufacturer.
The concept designed to make victims of losses whole again reflect the principle
of: - answer✔✔ - Indemnification
The design of any employee benefit plan should start with deciding: -
answer✔✔ - What are the overall objectives of the plan.
A peril as the term applies to the insurance mechanism is defined as: -
answer✔✔ - The cause of loss
A healthcare plan that has no restrictions on a member's choice of provider, no
,"steerage," and no basic utilization management is known as: - CorrECt
ANSwErIndemnity plan
The legislation that plays a fundamentally important role in protecting sensitive
patient information gathered during behavioral treatment is: - CorrECt
ANSwErHealth Insurance Portability and Accountability Act (HIPAA)
A dental plan in which certain procedures are reimbursed on a scheduled basis
and others are reimbursed on a nonscheduled basis is called a(n): - answer✔✔ -
Combination plan
Regarding return on investment (ROI) evaluations and calculations, ROI
evaluations usually: - answer✔✔ - Only consider the payback for the investor in
terms of the money they get back for the money they put in.
A behavioral health care carve-out program usually operates under a separate
contract and from a separate company known as: - answer✔✔ - a Managed
Behavioral Health Care Organization (MBHO)
There can be great variability in employer spending to sponsor a workplace
wellness program. The cost of these programs per employee per year typically
ranges from: - answer✔✔ - $0-$450
Regarding employee benefit planning, the functional approach is: - answer✔✔ -
,Compatible with both the compensation/service oriented benefit philosophy
and the needs-oriented benefit philosophy
The landmark "Inland Steel Case" had extreme importance because it: -
answer✔✔ - Stated the employer had the duty to bargain in good faith over
wages which also included insurance and fringe benefits
Money forfeited by employees under the use-it-or-lose-it rule in cafeteria plans
is called an experience gain. These experience gains may not be: - CorrECt
ANSwErReturned to the employees who incurred the forfeitures.
They may be:
- retained by the employer
- used to reduce admin expenses
- used to reduce employer's required salary reduction amounts
- donated to charity
Numerous studies have examined the effectiveness of workplace wellness
programs in promoting health or preventing disease. How effective are they
proven to be based on the studies? - answer✔✔ - These programs have had
limited evidence of their effectiveness.
Generally in a premium conversion cafeteria plan: - answer✔✔ - There are no
employer contributions.
, The "managed care backlash" of the late 1990s created significant growth in
which of the following types of health care organizations? - answer✔✔ -
Preferred Provider Organizations (PPOs)
For a cafeteria plan to be afforded favorable tax treatment, the plan must allow
participants to choose between how many benefits consisting of cash (or a
taxable benefit that is treated as cash) and qualified benefits? - answer✔✔ - Two
or more
The maximum annual contribution that can be made to a health savings account
(HSA) is: - answer✔✔ - A flat dollar amount for individuals and a flat dollar
amount for families
When a participant of a cafeteria plan makes a one-time election on coverage
that stays in force from plan year to plan year unless the participant elects to
make a change during the applicable election period, it is referred to as a(n): -
answer✔✔ - Evergreen election
Which risk-handling techniques are being used by a firm that decides to not
produce a dangerous chemical, to purchase insurance with a $10,000 deductible
on its assets and to install a fire sprinkler system throughout the plant? - CorrECt
ANSwErAvoidance, retention, insurance and control
