,CEBS (Certified Employee Benefit Specialist) EXAM |||questions and answers
with rationales/graded A+/2026 update/100% correct /instant download
Question 1: Affordable Care Act and Actuarial Tiers (GBA)
Question: Under the Affordable Care Act (ACA), health insurance plans offered
through public exchanges are categorized into metal tiers based on their
actuarial value. Which metal tier has a standard actuarial value of 70% and is
uniquely tied to cost-sharing reduction (CSR) subsidies for eligible low-income
individuals?
A) Bronze
B) Silver
C) Gold
D) Platinum
Answer: B) Silver
Rationale: The Silver tier is designed with an actuarial value of approximately
70% (meaning the plan pays on average 70% of medical costs, while the
participant pays 30%). It is the only tier eligible for federal cost-sharing
reductions, which lower out-of-pocket deductibles, copayments, and
coinsurance for qualifying low-income participants.
Question 2: Group Life Insurance Provisions (GBA)
Question: A provision in a group life insurance contract that permits the advance
payment of a portion of the face amount to an insured individual diagnosed
with a terminal illness is known as:
A) Waiver of premiums
B) Conversion privilege
C) Accelerated death benefits
D) Assignment of benefits
, Answer: C) Accelerated death benefits
Rationale: Accelerated (or living) death benefits allow terminally ill insureds to
access a portion of their death benefit prior to death to help pay for medical
care or end-of-life expenses. By contrast, a waiver of premiums keeps coverage
active without premium payments if an employee becomes totally disabled,
while the conversion privilege allows changing group coverage to an individual
policy upon employment termination.
Question 3: ERISA Fiduciary Responsibilities in Defined Contribution Plans (RPA)
Question: Under the Employee Retirement Income Security Act (ERISA), plan
fiduciaries must discharge their duties solely in the interest of participants and
beneficiaries. When selecting and monitoring investment options for a
participant-directed 401(k) plan, what is a primary fiduciary obligation?
A) Guaranteeing a minimum annual rate of return to all participants
B) Choosing only investments with zero administrative fees regardless of
performance history
C) Establishing a prudent review process to evaluate investment performance,
risk profiles, and the reasonableness of plan fees
D) Automatically allocating all assets into conservative money market
instruments
Answer: C) Establishing a prudent review process to evaluate investment
performance, risk profiles, and the reasonableness of plan fees
Rationale: ERISA does not require guaranteed investment returns or restrict
selections strictly to zero-fee options. Instead, fiduciaries must demonstrate
procedural prudence by regularly monitoring investment funds, maintaining a
diversified lineup, and ensuring that administrative and investment
management fees are reasonable relative to the services rendered.
Question 4: Defined Benefit Plan Actuarial Assumptions (RPA)
with rationales/graded A+/2026 update/100% correct /instant download
Question 1: Affordable Care Act and Actuarial Tiers (GBA)
Question: Under the Affordable Care Act (ACA), health insurance plans offered
through public exchanges are categorized into metal tiers based on their
actuarial value. Which metal tier has a standard actuarial value of 70% and is
uniquely tied to cost-sharing reduction (CSR) subsidies for eligible low-income
individuals?
A) Bronze
B) Silver
C) Gold
D) Platinum
Answer: B) Silver
Rationale: The Silver tier is designed with an actuarial value of approximately
70% (meaning the plan pays on average 70% of medical costs, while the
participant pays 30%). It is the only tier eligible for federal cost-sharing
reductions, which lower out-of-pocket deductibles, copayments, and
coinsurance for qualifying low-income participants.
Question 2: Group Life Insurance Provisions (GBA)
Question: A provision in a group life insurance contract that permits the advance
payment of a portion of the face amount to an insured individual diagnosed
with a terminal illness is known as:
A) Waiver of premiums
B) Conversion privilege
C) Accelerated death benefits
D) Assignment of benefits
, Answer: C) Accelerated death benefits
Rationale: Accelerated (or living) death benefits allow terminally ill insureds to
access a portion of their death benefit prior to death to help pay for medical
care or end-of-life expenses. By contrast, a waiver of premiums keeps coverage
active without premium payments if an employee becomes totally disabled,
while the conversion privilege allows changing group coverage to an individual
policy upon employment termination.
Question 3: ERISA Fiduciary Responsibilities in Defined Contribution Plans (RPA)
Question: Under the Employee Retirement Income Security Act (ERISA), plan
fiduciaries must discharge their duties solely in the interest of participants and
beneficiaries. When selecting and monitoring investment options for a
participant-directed 401(k) plan, what is a primary fiduciary obligation?
A) Guaranteeing a minimum annual rate of return to all participants
B) Choosing only investments with zero administrative fees regardless of
performance history
C) Establishing a prudent review process to evaluate investment performance,
risk profiles, and the reasonableness of plan fees
D) Automatically allocating all assets into conservative money market
instruments
Answer: C) Establishing a prudent review process to evaluate investment
performance, risk profiles, and the reasonableness of plan fees
Rationale: ERISA does not require guaranteed investment returns or restrict
selections strictly to zero-fee options. Instead, fiduciaries must demonstrate
procedural prudence by regularly monitoring investment funds, maintaining a
diversified lineup, and ensuring that administrative and investment
management fees are reasonable relative to the services rendered.
Question 4: Defined Benefit Plan Actuarial Assumptions (RPA)
