CEBS GBA 1 Practice Exam – Group Benefits Associate
Exam Questions and Verified Answers with Complete
Solutions | Updated 2025/2026 | Instant Download
Which of the following statements correctly describes minimum
requirements that group benefit plans typically must meet in order to be
prospectively rated on contract renewal? - (ANSWERS)The more
unpredictable the event that will trigger a claim, the larger the minimum
group size and premium requirements
Which of the following statements correctly describes the term graduation
as it applies to mortality tables? - (ANSWERS)It is a mathematical process
that removes anomalies that should not appear in the mortality data
If the plan sponsor pays the premium, which of the following group insured
benefits is taxable to the plan member? - (ANSWERS)Long-term disability
(LTD)
Which of the following statements correctly describes phases of a group
plan marketing? - (ANSWERS)Plan features of both contributory and
noncontributory benefit plans must be communicated to plan members
during the enrollment process
Which of the following statements correctly describes a characteristic of an
insurable risk? - (ANSWERS)The loss must have financial significance to
the insured (The loss must not be catastrophic to the insurer. Option C: The
loss must occur by chance. Option D: The loss must be predictable for the
insurer.)
With respect to marketing a group insurance plan, which of the following
statements best describes insurer representatives known as account
,CEBS GBA 1 Practice Exam – Group Benefits Associate
Exam Questions and Verified Answers with Complete
Solutions | Updated 2025/2026 | Instant Download
executives? - (ANSWERS)They are involved in enrolling group members
and installing new plans
Which of the following statements correctly describes the statistical concept
known as the law of large numbers? - (ANSWERS)Future probabilities of
loss are not valid unless a large number of incidents exist to ensure the
outcomes are less likely to deviate
Which of the following statements correctly describes an insured plan that
is insurer-administered? - (ANSWERS)For self-insured plans with an
administrative services only (ASO) arrangement, the insurer bills the plan
sponsor monthly for administration fees
If the probability that an individual will live one year is 0.95 and the
probability of dying in the following year is 0.10, what is the probability
that an individual will survive both years? - (ANSWERS)0.855 (P (Survive
both years) = (0.95) x (1 - 0.1) = 0.95 x 0.90 = 0.855.)
Which of the following statements correctly describes the group benefits
enrollment process for new employees? - (ANSWERS)An employee can
enroll in the plan any time between his or her date of hire and the end of a
waiting period
A type of service offered under a third-party administrators (tpas) claims
settlement only arrangement is: - (ANSWERS)Adjudicating and paying
claims
, CEBS GBA 1 Practice Exam – Group Benefits Associate
Exam Questions and Verified Answers with Complete
Solutions | Updated 2025/2026 | Instant Download
Unless otherwise specified in the group insurance contract, a plan member's
status under a group benefits plan terminates the earliest at which: -
(ANSWERS)The plan member retires (Unless otherwise specified in the
group insurance contract, the order in which coverage terminates is
effective the earliest date the plan member retires, the plan member's
service with the plan sponsor is terminated, the plan member ceases active
work, and the plan member is no longer a member of an eligible class and
premium payments stop.)
Which of the following statements correctly describes eligibility
requirements under most group insurance plans? - (ANSWERS)Unmarried
children under a specified age and dependent on the plan member for
support are eligible for coverage
Which of the following statements correctly describes the negotiated
placement method of marketing a group benefits plan? - (ANSWERS)Once
potential insurers are identified, each company submits a brief report that
highlights its general strategy, philosophy and proposed group benefits plan
True North Insurance has established a waiver-of-premium reserve of
$100,000 and will have to pay out an optional life insurance benefit of
$200,000. With an interest rate of 6% compounded annually, how many
years will it take for the reserve of $100,000 to accumulate to $200,000? -
(ANSWERS)12 years (Use the relationship between future value and
present value to solve for the number of time periods.
Fvt = PV x (1 + r)^t
$200,000 = $100,000 x (1 + 6%)^t
Exam Questions and Verified Answers with Complete
Solutions | Updated 2025/2026 | Instant Download
Which of the following statements correctly describes minimum
requirements that group benefit plans typically must meet in order to be
prospectively rated on contract renewal? - (ANSWERS)The more
unpredictable the event that will trigger a claim, the larger the minimum
group size and premium requirements
Which of the following statements correctly describes the term graduation
as it applies to mortality tables? - (ANSWERS)It is a mathematical process
that removes anomalies that should not appear in the mortality data
If the plan sponsor pays the premium, which of the following group insured
benefits is taxable to the plan member? - (ANSWERS)Long-term disability
(LTD)
Which of the following statements correctly describes phases of a group
plan marketing? - (ANSWERS)Plan features of both contributory and
noncontributory benefit plans must be communicated to plan members
during the enrollment process
Which of the following statements correctly describes a characteristic of an
insurable risk? - (ANSWERS)The loss must have financial significance to
the insured (The loss must not be catastrophic to the insurer. Option C: The
loss must occur by chance. Option D: The loss must be predictable for the
insurer.)
With respect to marketing a group insurance plan, which of the following
statements best describes insurer representatives known as account
,CEBS GBA 1 Practice Exam – Group Benefits Associate
Exam Questions and Verified Answers with Complete
Solutions | Updated 2025/2026 | Instant Download
executives? - (ANSWERS)They are involved in enrolling group members
and installing new plans
Which of the following statements correctly describes the statistical concept
known as the law of large numbers? - (ANSWERS)Future probabilities of
loss are not valid unless a large number of incidents exist to ensure the
outcomes are less likely to deviate
Which of the following statements correctly describes an insured plan that
is insurer-administered? - (ANSWERS)For self-insured plans with an
administrative services only (ASO) arrangement, the insurer bills the plan
sponsor monthly for administration fees
If the probability that an individual will live one year is 0.95 and the
probability of dying in the following year is 0.10, what is the probability
that an individual will survive both years? - (ANSWERS)0.855 (P (Survive
both years) = (0.95) x (1 - 0.1) = 0.95 x 0.90 = 0.855.)
Which of the following statements correctly describes the group benefits
enrollment process for new employees? - (ANSWERS)An employee can
enroll in the plan any time between his or her date of hire and the end of a
waiting period
A type of service offered under a third-party administrators (tpas) claims
settlement only arrangement is: - (ANSWERS)Adjudicating and paying
claims
, CEBS GBA 1 Practice Exam – Group Benefits Associate
Exam Questions and Verified Answers with Complete
Solutions | Updated 2025/2026 | Instant Download
Unless otherwise specified in the group insurance contract, a plan member's
status under a group benefits plan terminates the earliest at which: -
(ANSWERS)The plan member retires (Unless otherwise specified in the
group insurance contract, the order in which coverage terminates is
effective the earliest date the plan member retires, the plan member's
service with the plan sponsor is terminated, the plan member ceases active
work, and the plan member is no longer a member of an eligible class and
premium payments stop.)
Which of the following statements correctly describes eligibility
requirements under most group insurance plans? - (ANSWERS)Unmarried
children under a specified age and dependent on the plan member for
support are eligible for coverage
Which of the following statements correctly describes the negotiated
placement method of marketing a group benefits plan? - (ANSWERS)Once
potential insurers are identified, each company submits a brief report that
highlights its general strategy, philosophy and proposed group benefits plan
True North Insurance has established a waiver-of-premium reserve of
$100,000 and will have to pay out an optional life insurance benefit of
$200,000. With an interest rate of 6% compounded annually, how many
years will it take for the reserve of $100,000 to accumulate to $200,000? -
(ANSWERS)12 years (Use the relationship between future value and
present value to solve for the number of time periods.
Fvt = PV x (1 + r)^t
$200,000 = $100,000 x (1 + 6%)^t
