CEBS GPA 1 Practice Test Exam Questions with 100% Correct
Answers Latest Graded A+
Question:
E.) Avoidance, retention, insurance and control Module: 2 Reference: Employee Benefits Design
and Compliance, First Edition, pages 39-42. Study Guide, First Edition, page 8, Objective 2.5.
Answer:
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?
Question:
a. Insurance and retention b. Control and transfer c. Noninsurance transfer and insurance d.
Avoidance, insurance and transfer e. Avoidance, retention, insurance and control A.) Two or more
Module: 9 Reference: Employee Benefits Design and Compliance, First Edition, page 179.Study
Guide, First Edition, page 18, Objective 5.3.
Answer:
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?
Question:
a. Two or more b. Three or more c. Four or more d. Five or more e. Six or more A.) The objectives
of such programs are to promote healthy lifestyles among employees by targeting the risks that
result from poor nutrition, lack of physical activity, excessive stress, tobacco use and other
unhealthy habits.Module: 8 Reference: Employee Benefits Design and Compliance, First Edition,
pages 262- 267.Study Guide, First Edition, pages 5-6, Questions 1.1 and 1.2.
Answer:
Which of the following statements related to employer-sponsored wellness programs is correct?
Question:
a. The objectives of such programs are to promote healthy lifestyles among employees by targeting
the risks that result from poor nutrition, lack of physical activity, excessive stress, tobacco use and
other unhealthy habits. b. Health promotion programs sponsored by small employers have been
unable to promote healthy lifestyle choices and discourage behaviors and attitudes that are
,detrimental to good health. c. Unhealthy risk factors leading to expensive chronic diseases and
health issues have been found to have minimal impact on safety and employee morale in the service
industry. d. Researchers have observed that preventable illness accounts for up to 20% of the total
cost of health care. e. Health promotion programs use a reflexive conditioning approach to
changing employee behavior. C.) Indemnification Module: 2 Reference: Employee Benefits Design
and Compliance, First Edition, page 42.Study Guide, First Edition, page 10, Objective 3.3. C.)
"Full" and is effective for three years
Answer:
The concept designed to make victims of losses whole again reflects the principle of:
Question:
a. Insurable interest b. Insurance c. Indemnification d. Transfer e. Pure risk
Answer:
The highest level of accreditation granted to managed behavioral healthcare organizations
(MBHOs) by the National Committee for Quality Assurance is:
Question:
a. A.) A+ and is effective for one year b. B.) A+ and is effective for two years c. C.) "Full" and is
effective for three years d. D.) "Full" and is effective for five years e. E.) "Unconditional" and is
effective for four years B.) Inland Steel case Module: 1 Reference: Employee Benefits Design and
Compliance, First Edition, page 4.Study Guide, First Edition, page 7, Objective 2.2.
Answer:
1. The National Labor Relations Board (NLRB) ruled that the employer had the duty to bargain in
good faith over wages, which also included insurance and fringe benefits, in the landmark case
referred to as the:
Question:
a. A.) Taft-Hartley Act case b. B.) Inland Steel case c. C.) Financial Accounting Standard 106 case
d. D.) COBRA Act case e. E.) W.W. Cross & Co. case E.) There are no employer
contributions.Module: 9Reference: Employee Benefits Design and Compliance, First Edition,
pages 169-170.Study Guide, First Edition, page 11, Objective 3.2.
Answer:
1. Generally in a premium conversion cafeteria plan:
Question:
,a. A.) An employer contribution of 10% of pay is required. b. B.) An employer contribution of 15%
of pay is required. c. C.) An employer contribution of 25% of pay is required. d. D.) An employer
contribution of 30% of pay is required. E.) There are no employer contributions B.) Health
Insurance Portability and Accountability Act (HIPAA)Module: 7Reference: Employee Benefits
Design and Compliance, First Edition, page 73.Study Guide, First Edition, page 16, Objective 4.3.
Answer:
1. The legislation that
plays a fundamentally important role in protecting sensitive patient information gathered during
behavioral treatment is the:
Question:
a. A.) Employee Retirement Income Security Act (ERISA) b. B.) Health Insurance Portability and
Accountability Act (HIPAA) c. C.) Health Maintenance Organizations Act (HMO) d. D.)
Americans with Disabilities Act (ADA) E.) Mental Health Parity and Addiction Equity Act
(MHPAEA) B.) Preferred provider organizations (PPOs)Module: 3Reference: Employee Benefits
Design and Compliance, First Edition, page 218.Study Guide, First Edition, page 6, Objective 1.5.
Answer:
1. The "managed care backlash" of the late 1990s gave direct rise to which of the following types of
health care organizations?
Question:
a. A.) Health maintenance organizations (HMOs) b. B.) Preferred provider organizations (PPOs) c.
C.) Health savings accounts (HSAs) d. D.) Health reimbursement arrangements (HRAs) e. E.)
High-deductible health plans (HDHPs) 1. C.) Needs of employeesModule: 1Reference: Employee
Benefits Design and Compliance, First Edition, page 16.Study Guide, First Edition, page 13,
Objective 4.6.
Answer:
1. The benefit-oriented philosophy of designing employee benefits tends to focus on:
Question:
a. Compensation of employees b. Services of employees c. Needs of employees d. Capability of
employees e. Job Classification of employees D.) Managed behavioral health care organization
(MBHO)Module: 7Reference: Employee Benefits Design and Compliance, First Edition, pages
65-66.Study Guide, First Edition, page 9, Objective 2.1.
Answer:
, 1. A behavioral health care carve-out program usually operates under a separate contract and from a
separate company known as a(n):
Question:
a. Managed behavioral modification program (MBMP) b. Administrative services only (ASO)
organization c. Employee assistance program (EAP) d. Managed behavioral health care
organization (MBHO) e. Managed mental health care company (MMHCC) A.) Audit performance
evaluationModule: 12Reference: Employee Benefits Design and Compliance, First Edition, pages
311-312.Study Guide, First Edition, pages 14- 15, Objective 3.2.
Answer:
1. There are several methods for evaluating health system performance. Accreditation by the
NCQA is an example of which of the following methods?
Question:
a. Audit performance evaluation b. Single-case time trend performance evaluation c. Service
comparison performance evaluation d. Crossover comparative trial evaluation e. Before-after
design evaluation A.) A rebate occurs when there is an agreement between a pharmacy benefit
manager and a drug manufacturer.Module: 6Reference: Employee Benefits Design and
Compliance, First Edition, page 124.Study Guide, First Edition, page 23, Objective 5.5.
Answer:
1. Which of the following statements regarding prescription drug rebates is correct?
Question:
a. A rebate occurs when there is an agreement between a pharmacy benefit manager and a drug
manufacturer. b. Rebates are predominantly found in state Medicaid programs. c. The growth of
rebates has paralleled the rise of a single-tier copay prescription plan design. d. Some of the savings
from rebates are passed along to independent pharmacy owners. e. Rebates can reduce a payer's
total drug expenses by about 15%. A.) A fixed, indexed amountModule: 4Reference: Employee
Benefits Design and Compliance, First Edition, pages 238-239.Study Guide, First Edition, page 5,
Objective 1.5.
Answer:
1. The maximum annual contribution that can be made to a health savings account (HSA) is:
Question:
a. A fixed, indexed amount b. A percentage of the participant's compensation c. The annual
deductible under the high-deductible health plan (HDHP) d. The greater of either 100 % of the
annual deductible under the HDHP or a fixed, indexed amount e. The lesser of either 100 % of the
Answers Latest Graded A+
Question:
E.) Avoidance, retention, insurance and control Module: 2 Reference: Employee Benefits Design
and Compliance, First Edition, pages 39-42. Study Guide, First Edition, page 8, Objective 2.5.
Answer:
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?
Question:
a. Insurance and retention b. Control and transfer c. Noninsurance transfer and insurance d.
Avoidance, insurance and transfer e. Avoidance, retention, insurance and control A.) Two or more
Module: 9 Reference: Employee Benefits Design and Compliance, First Edition, page 179.Study
Guide, First Edition, page 18, Objective 5.3.
Answer:
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?
Question:
a. Two or more b. Three or more c. Four or more d. Five or more e. Six or more A.) The objectives
of such programs are to promote healthy lifestyles among employees by targeting the risks that
result from poor nutrition, lack of physical activity, excessive stress, tobacco use and other
unhealthy habits.Module: 8 Reference: Employee Benefits Design and Compliance, First Edition,
pages 262- 267.Study Guide, First Edition, pages 5-6, Questions 1.1 and 1.2.
Answer:
Which of the following statements related to employer-sponsored wellness programs is correct?
Question:
a. The objectives of such programs are to promote healthy lifestyles among employees by targeting
the risks that result from poor nutrition, lack of physical activity, excessive stress, tobacco use and
other unhealthy habits. b. Health promotion programs sponsored by small employers have been
unable to promote healthy lifestyle choices and discourage behaviors and attitudes that are
,detrimental to good health. c. Unhealthy risk factors leading to expensive chronic diseases and
health issues have been found to have minimal impact on safety and employee morale in the service
industry. d. Researchers have observed that preventable illness accounts for up to 20% of the total
cost of health care. e. Health promotion programs use a reflexive conditioning approach to
changing employee behavior. C.) Indemnification Module: 2 Reference: Employee Benefits Design
and Compliance, First Edition, page 42.Study Guide, First Edition, page 10, Objective 3.3. C.)
"Full" and is effective for three years
Answer:
The concept designed to make victims of losses whole again reflects the principle of:
Question:
a. Insurable interest b. Insurance c. Indemnification d. Transfer e. Pure risk
Answer:
The highest level of accreditation granted to managed behavioral healthcare organizations
(MBHOs) by the National Committee for Quality Assurance is:
Question:
a. A.) A+ and is effective for one year b. B.) A+ and is effective for two years c. C.) "Full" and is
effective for three years d. D.) "Full" and is effective for five years e. E.) "Unconditional" and is
effective for four years B.) Inland Steel case Module: 1 Reference: Employee Benefits Design and
Compliance, First Edition, page 4.Study Guide, First Edition, page 7, Objective 2.2.
Answer:
1. The National Labor Relations Board (NLRB) ruled that the employer had the duty to bargain in
good faith over wages, which also included insurance and fringe benefits, in the landmark case
referred to as the:
Question:
a. A.) Taft-Hartley Act case b. B.) Inland Steel case c. C.) Financial Accounting Standard 106 case
d. D.) COBRA Act case e. E.) W.W. Cross & Co. case E.) There are no employer
contributions.Module: 9Reference: Employee Benefits Design and Compliance, First Edition,
pages 169-170.Study Guide, First Edition, page 11, Objective 3.2.
Answer:
1. Generally in a premium conversion cafeteria plan:
Question:
,a. A.) An employer contribution of 10% of pay is required. b. B.) An employer contribution of 15%
of pay is required. c. C.) An employer contribution of 25% of pay is required. d. D.) An employer
contribution of 30% of pay is required. E.) There are no employer contributions B.) Health
Insurance Portability and Accountability Act (HIPAA)Module: 7Reference: Employee Benefits
Design and Compliance, First Edition, page 73.Study Guide, First Edition, page 16, Objective 4.3.
Answer:
1. The legislation that
plays a fundamentally important role in protecting sensitive patient information gathered during
behavioral treatment is the:
Question:
a. A.) Employee Retirement Income Security Act (ERISA) b. B.) Health Insurance Portability and
Accountability Act (HIPAA) c. C.) Health Maintenance Organizations Act (HMO) d. D.)
Americans with Disabilities Act (ADA) E.) Mental Health Parity and Addiction Equity Act
(MHPAEA) B.) Preferred provider organizations (PPOs)Module: 3Reference: Employee Benefits
Design and Compliance, First Edition, page 218.Study Guide, First Edition, page 6, Objective 1.5.
Answer:
1. The "managed care backlash" of the late 1990s gave direct rise to which of the following types of
health care organizations?
Question:
a. A.) Health maintenance organizations (HMOs) b. B.) Preferred provider organizations (PPOs) c.
C.) Health savings accounts (HSAs) d. D.) Health reimbursement arrangements (HRAs) e. E.)
High-deductible health plans (HDHPs) 1. C.) Needs of employeesModule: 1Reference: Employee
Benefits Design and Compliance, First Edition, page 16.Study Guide, First Edition, page 13,
Objective 4.6.
Answer:
1. The benefit-oriented philosophy of designing employee benefits tends to focus on:
Question:
a. Compensation of employees b. Services of employees c. Needs of employees d. Capability of
employees e. Job Classification of employees D.) Managed behavioral health care organization
(MBHO)Module: 7Reference: Employee Benefits Design and Compliance, First Edition, pages
65-66.Study Guide, First Edition, page 9, Objective 2.1.
Answer:
, 1. A behavioral health care carve-out program usually operates under a separate contract and from a
separate company known as a(n):
Question:
a. Managed behavioral modification program (MBMP) b. Administrative services only (ASO)
organization c. Employee assistance program (EAP) d. Managed behavioral health care
organization (MBHO) e. Managed mental health care company (MMHCC) A.) Audit performance
evaluationModule: 12Reference: Employee Benefits Design and Compliance, First Edition, pages
311-312.Study Guide, First Edition, pages 14- 15, Objective 3.2.
Answer:
1. There are several methods for evaluating health system performance. Accreditation by the
NCQA is an example of which of the following methods?
Question:
a. Audit performance evaluation b. Single-case time trend performance evaluation c. Service
comparison performance evaluation d. Crossover comparative trial evaluation e. Before-after
design evaluation A.) A rebate occurs when there is an agreement between a pharmacy benefit
manager and a drug manufacturer.Module: 6Reference: Employee Benefits Design and
Compliance, First Edition, page 124.Study Guide, First Edition, page 23, Objective 5.5.
Answer:
1. Which of the following statements regarding prescription drug rebates is correct?
Question:
a. A rebate occurs when there is an agreement between a pharmacy benefit manager and a drug
manufacturer. b. Rebates are predominantly found in state Medicaid programs. c. The growth of
rebates has paralleled the rise of a single-tier copay prescription plan design. d. Some of the savings
from rebates are passed along to independent pharmacy owners. e. Rebates can reduce a payer's
total drug expenses by about 15%. A.) A fixed, indexed amountModule: 4Reference: Employee
Benefits Design and Compliance, First Edition, pages 238-239.Study Guide, First Edition, page 5,
Objective 1.5.
Answer:
1. The maximum annual contribution that can be made to a health savings account (HSA) is:
Question:
a. A fixed, indexed amount b. A percentage of the participant's compensation c. The annual
deductible under the high-deductible health plan (HDHP) d. The greater of either 100 % of the
annual deductible under the HDHP or a fixed, indexed amount e. The lesser of either 100 % of the
