CEBS GBA 1 AND 2 FINAL PAPER EXAM QUESTIONS ACCURATE ANSWERS FULL
SOLUTION
CEBS GBA 1 AND 2 Comprehensive Examination
TEST 2026/2027 FULL Q&a WITH Questions and
Answers Verified Solutions Latest Update
Question:
_____________________ restores the individual to their preexisting state had the loss not occurred.
Answer:
indemnification
Question:
________________ occurs because individuals and businesses are more likely to have claims, and
more inclined to purchase insurance, than those who are less likely to have claims.
Answer:
Adverse selection
Question:
True or False: Adverse selection, if unchecked, will lead toward more healthy individuals seeking
insurance and lowering premiums.
Answer:
False: Adverse selection, if unchecked, will lead toward more sick individuals seeking insurance,
driving up insurance premiums, and then even fewer healthy individuals will purchase, continuing
the spiral of higher costs.
Question:
True or False: Adverse selection occurs when individual buyers of health insurance know more
about their health status than do insurers.
Answer:
True
,Question:
_______________ is the problem faced by insurers because individuals are more likely to use
unneeded health services when they are not paying the full cost of those services.
Answer:
Moral hazard
Question:
What is the primary tool that insurers have to combat the moral hazard problem?
Answer:
Coinsurancce (%) and copayments ($)
Question:
What is the generic term for any outside party, typically an insurance company or a a government
program, which pays for part or all of a patient's health care services?
Answer:
third-party payer
Question:
What are the two broad categories of health insurers?
Answer:
1) Private insurers 2) Public programs / insurers
Question:
What are the 3 major private insurers?
Answer:
1) Blue Cross Blue Shield 2) Commercial insurers 3) Self-insurers
,Question:
_________________ Plans originated as a number of separate insurance programs offered by
individual hospitals. a) Blue Cross b) Red Cross c) Blue Shield d) Red Shield e) Humana.
Answer:
a) Blue Cross
Question:
_________________ Plans originated as a number of separate insurance programs offered by
individual physicians. a) Blue Cross b) Red Cross c) Blue Shield d) Red Shield e) Humana.
Answer:
c) Blue Shield
Question:
What type of health insurance is issued by life insurance companies, casualty insurance companies,
and companies formed exclusively to offer health care insurance?
Answer:
commercial health insurance
Question:
True or False: Commercial insurance companies are taxable (for- profit) entities.
Answer:
True
Question:
True or False: Following World War II, the Internal Revenue Service ruled that employer-provided
health insurance was taxable.
Answer:
, False: The IRS ruled that employer-provided health insurance was NOT taxable, giving employers
incentive to offer the tax-free benefit.
Question:
True or False: The US federal government is a major insurer as well as a direct provider of health
care services.
Answer:
True
Question:
V.A. benefits, the TRICARE program, HHS, Medicare, and Medicaid are all examples of: a) Public
programs / insurers b) Private insurers.
Answer:
a) Public programs / insurers
Question:
Which program was established by Congress in 1965 primarily to provide medical benefits to
individuals age 65 or older?
Answer:
Medicare
Question:
Which Part of Medicare coverage provides hospital and some skilled nursing facility coverage? a)
Part A b) Part B c) Part C d) Part D.
Answer:
Part A
Question:
SOLUTION
CEBS GBA 1 AND 2 Comprehensive Examination
TEST 2026/2027 FULL Q&a WITH Questions and
Answers Verified Solutions Latest Update
Question:
_____________________ restores the individual to their preexisting state had the loss not occurred.
Answer:
indemnification
Question:
________________ occurs because individuals and businesses are more likely to have claims, and
more inclined to purchase insurance, than those who are less likely to have claims.
Answer:
Adverse selection
Question:
True or False: Adverse selection, if unchecked, will lead toward more healthy individuals seeking
insurance and lowering premiums.
Answer:
False: Adverse selection, if unchecked, will lead toward more sick individuals seeking insurance,
driving up insurance premiums, and then even fewer healthy individuals will purchase, continuing
the spiral of higher costs.
Question:
True or False: Adverse selection occurs when individual buyers of health insurance know more
about their health status than do insurers.
Answer:
True
,Question:
_______________ is the problem faced by insurers because individuals are more likely to use
unneeded health services when they are not paying the full cost of those services.
Answer:
Moral hazard
Question:
What is the primary tool that insurers have to combat the moral hazard problem?
Answer:
Coinsurancce (%) and copayments ($)
Question:
What is the generic term for any outside party, typically an insurance company or a a government
program, which pays for part or all of a patient's health care services?
Answer:
third-party payer
Question:
What are the two broad categories of health insurers?
Answer:
1) Private insurers 2) Public programs / insurers
Question:
What are the 3 major private insurers?
Answer:
1) Blue Cross Blue Shield 2) Commercial insurers 3) Self-insurers
,Question:
_________________ Plans originated as a number of separate insurance programs offered by
individual hospitals. a) Blue Cross b) Red Cross c) Blue Shield d) Red Shield e) Humana.
Answer:
a) Blue Cross
Question:
_________________ Plans originated as a number of separate insurance programs offered by
individual physicians. a) Blue Cross b) Red Cross c) Blue Shield d) Red Shield e) Humana.
Answer:
c) Blue Shield
Question:
What type of health insurance is issued by life insurance companies, casualty insurance companies,
and companies formed exclusively to offer health care insurance?
Answer:
commercial health insurance
Question:
True or False: Commercial insurance companies are taxable (for- profit) entities.
Answer:
True
Question:
True or False: Following World War II, the Internal Revenue Service ruled that employer-provided
health insurance was taxable.
Answer:
, False: The IRS ruled that employer-provided health insurance was NOT taxable, giving employers
incentive to offer the tax-free benefit.
Question:
True or False: The US federal government is a major insurer as well as a direct provider of health
care services.
Answer:
True
Question:
V.A. benefits, the TRICARE program, HHS, Medicare, and Medicaid are all examples of: a) Public
programs / insurers b) Private insurers.
Answer:
a) Public programs / insurers
Question:
Which program was established by Congress in 1965 primarily to provide medical benefits to
individuals age 65 or older?
Answer:
Medicare
Question:
Which Part of Medicare coverage provides hospital and some skilled nursing facility coverage? a)
Part A b) Part B c) Part C d) Part D.
Answer:
Part A
Question:
