CEBS - GBA 1 - Practice Exam Frequently Most Tested Questions and Verified Accurate Answers
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Course
CEBS
Institution
CEBS
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?
The more unpredictable the event that will trigger a claim, the larger the minimum group
size and premium requirement...
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CEBS - GBA 1 - Practice Exam Frequently
Most Tested Questions and Verified
Accurate Answers
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?
✓ 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?
✓ 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?
✓ Long-term disability (LTD)
Which of the following statements correctly describes phases of a group plan marketing?
✓ 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?
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✓ 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 executives?
✓ 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?
✓ 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?
✓ 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?
✓ 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
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✓ 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:
✓ Adjudicating and paying claims
Unless otherwise specified in the group insurance contract, a plan member's status under a
group benefits plan terminates the earliest at which:
✓ 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?
✓ 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?
✓ Once potential insurers are identified, each company submits a brief report that highlights
its general strategy, philosophy and proposed group benefits plan
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