CEBS GBA 2 ACTUAL EXAM QUESTIONS WITH COMPLETE
SOLUTION GUIDE) (MULTIPLE CHOICES) (A+ GRADED
100% VERIFIED) LATEST VERSION 2025
Which of the following are distinguishing characterstics that make health care unique?
a) Often only a few providers of a particular service exist in a given area.
b) It is easy to judge the quality and cost of competing services with new tools that
facilitate comparison.
c) The decision about which services to purchase is usually made by a physician or
other clinician.
d) Full payment to the provider is made by the consumer rather than a health care
insurer.
e) 3rd-party health insurance for most individuals is paid for or subsidized by
employers or government agencies, insulating patients from health care costs.
f) all of the above
g) a and b only
h) a, c, and e
,i) a, b, c, and d, but not e - ANSWER✔✔-Which of the following are distinguishing
characterstics that make health care unique?
a) Often only a few providers of a particular service exist in a given area.
b) It is easy to judge the quality and cost of competing services with new tools that
facilitate comparison.
c) The decision about which services to purchase is usually made by a physician or
other clinician.
d) Full payment to the provider is made by the consumer rather than a health care
insurer.
e) 3rd-party health insurance for most individuals is paid for or subsidized by
employers or government agencies, insulating patients from health care costs.
f) all of the above
g) a and b only
h) a, c, and e
i) a, b, c, and d, but not e
What are the 4 distinct characteristics of insurance? - ANSWER✔✔-1) Pooling of losses
2) Payment only for random losses
3) Risk transfer
,4) Indemnification
According to the law of numbers, pooling implies what 2 things? - ANSWER✔✔-1) The
sharing of losses by the entire group
2) The prediction of future losses with some accuracy.
A __________ loss is one that is unforseen and unexpected and occurs as a result of
chance. - ANSWER✔✔-random
What is the sole exception to the element of risk transfer, assuming the risk itself rather
than an insurance company? - ANSWER✔✔-self-insurance
_____________________ restores the individual to their preexisting state had the loss not
occurred. - ANSWER✔✔-indemnification
________________ 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
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.
, True or False: Adverse selection occurs when individual buyers of health insurance
know more about their health status than do insurers. - ANSWER✔✔-True
_______________ 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
What is the primary tool that insurers have to combat the moral hazard problem? -
ANSWER✔✔-Coinsurancce (%) and copayments ($)
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
What are the two broad categories of health insurers? - ANSWER✔✔-1) Private insurers
2) Public programs / insurers
What are the 3 major private insurers? - ANSWER✔✔-1) Blue Cross Blue Shield
2) Commercial insurers
3) Self-insurers
_________________ Plans originated as a number of separate insurance programs
offered by individual hospitals.
a) Blue Cross
SOLUTION GUIDE) (MULTIPLE CHOICES) (A+ GRADED
100% VERIFIED) LATEST VERSION 2025
Which of the following are distinguishing characterstics that make health care unique?
a) Often only a few providers of a particular service exist in a given area.
b) It is easy to judge the quality and cost of competing services with new tools that
facilitate comparison.
c) The decision about which services to purchase is usually made by a physician or
other clinician.
d) Full payment to the provider is made by the consumer rather than a health care
insurer.
e) 3rd-party health insurance for most individuals is paid for or subsidized by
employers or government agencies, insulating patients from health care costs.
f) all of the above
g) a and b only
h) a, c, and e
,i) a, b, c, and d, but not e - ANSWER✔✔-Which of the following are distinguishing
characterstics that make health care unique?
a) Often only a few providers of a particular service exist in a given area.
b) It is easy to judge the quality and cost of competing services with new tools that
facilitate comparison.
c) The decision about which services to purchase is usually made by a physician or
other clinician.
d) Full payment to the provider is made by the consumer rather than a health care
insurer.
e) 3rd-party health insurance for most individuals is paid for or subsidized by
employers or government agencies, insulating patients from health care costs.
f) all of the above
g) a and b only
h) a, c, and e
i) a, b, c, and d, but not e
What are the 4 distinct characteristics of insurance? - ANSWER✔✔-1) Pooling of losses
2) Payment only for random losses
3) Risk transfer
,4) Indemnification
According to the law of numbers, pooling implies what 2 things? - ANSWER✔✔-1) The
sharing of losses by the entire group
2) The prediction of future losses with some accuracy.
A __________ loss is one that is unforseen and unexpected and occurs as a result of
chance. - ANSWER✔✔-random
What is the sole exception to the element of risk transfer, assuming the risk itself rather
than an insurance company? - ANSWER✔✔-self-insurance
_____________________ restores the individual to their preexisting state had the loss not
occurred. - ANSWER✔✔-indemnification
________________ 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
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.
, True or False: Adverse selection occurs when individual buyers of health insurance
know more about their health status than do insurers. - ANSWER✔✔-True
_______________ 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
What is the primary tool that insurers have to combat the moral hazard problem? -
ANSWER✔✔-Coinsurancce (%) and copayments ($)
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
What are the two broad categories of health insurers? - ANSWER✔✔-1) Private insurers
2) Public programs / insurers
What are the 3 major private insurers? - ANSWER✔✔-1) Blue Cross Blue Shield
2) Commercial insurers
3) Self-insurers
_________________ Plans originated as a number of separate insurance programs
offered by individual hospitals.
a) Blue Cross
