CEBS - GBA 1 - Practice Exam
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1. Which of the following statements correctly de- The more unpredictable the
scribes minimum requirements that group benefit event that will trigger a
plans typically must meet in order to be prospectively claim, the larger the mini-
rated on contract renewal? mum group size and premi-
um requirements
2. Which of the following statements correctly de- It is a mathematical process
scribes the term graduation as it applies to mortality that removes anomalies that
tables? should not appear in the
mortality data
3. If the plan sponsor pays the premium, which of the Long-term disability (LTD)
following group insured benefits is taxable to the
plan member?
4. Which of the following statements correctly de- Plan features of both con-
scribes phases of a group plan marketing? tributory and noncontrib-
utory benefit plans must
be communicated to plan
members during the enroll-
ment process
5. Which of the following statements correctly de- The loss must have financial
scribes a characteristic of an insurable risk? significance to the insured
(The loss must not be cata-
strophic to the insurer. Op-
tion C: The loss must occur
by chance. Option D: The loss
must be predictable for the
insurer.)
6.
, CEBS - GBA 1 - Practice Exam
Study online at https://quizlet.com/_j7iggk
With respect to marketing a group insurance plan, They are involved in en-
which of the following statements best describes in- rolling group members and
surer representatives known as account executives? installing new plans
7. Which of the following statements correctly de- Future probabilities of loss
scribes the statistical concept known as the law of are not valid unless a large
large numbers? number of incidents exist to
ensure the outcomes are less
likely to deviate
8. Which of the following statements correctly de- For self-insured plans with
scribes an insured plan that is insurer-administered? an administrative services
only (ASO) arrangement, the
insurer bills the plan spon-
sor monthly for administra-
tion fees
9. If the probability that an individual will live one year 0.855 (P (Survive both years)
is 0.95 and the probability of dying in the following = (0.95) x (1 - 0.1) = 0.95 x
year is 0.10, what is the probability that an individual 0.90 = 0.855.)
will survive both years?
10. Which of the following statements correctly de- An employee can enroll in
scribes the group benefits enrollment process for the plan any time between
new employees? his or her date of hire and
the end of a waiting period
11. A type of service offered under a third-party admin- Adjudicating and paying
istrators (TPAs) claims settlement only arrangement claims
is:
12. The plan member retires
(Unless otherwise specified
, CEBS - GBA 1 - Practice Exam
Study online at https://quizlet.com/_j7iggk
Unless otherwise specified in the group insurance in the group insurance con-
contract, a plan member's status under a group ben- tract, the order in which cov-
efits plan terminates the earliest at which: erage 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 ac-
tive work, and the plan mem-
ber is no longer a member of
an eligible class and premi-
um payments stop.)
13. Which of the following statements correctly de- Unmarried children under a
scribes eligibility requirements under most group in- specified age and depen-
surance plans? dent on the plan member for
support are eligible for cov-
erage
14. Which of the following statements correctly de- Once potential insurers are
scribes the negotiated placement method of market- identified, each company
ing a group benefits plan? submits a brief report that
highlights its general strat-
egy, philosophy and pro-
posed group benefits plan
15. True North Insurance has established a waiv- 12 years (Use the relation-
er-of-premium reserve of $100,000 and will have ship between future value
to pay out an optional life insurance benefit of and present value to solve for
$200,000. With an interest rate of 6% compounded the number of time periods.
annually, how many years will it take for the reserve FVt = PV x (1 + r)^t
of $100,000 to accumulate to $200,000? $200,000 = $100,000 x (1 +
Study online at https://quizlet.com/_j7iggk
1. Which of the following statements correctly de- The more unpredictable the
scribes minimum requirements that group benefit event that will trigger a
plans typically must meet in order to be prospectively claim, the larger the mini-
rated on contract renewal? mum group size and premi-
um requirements
2. Which of the following statements correctly de- It is a mathematical process
scribes the term graduation as it applies to mortality that removes anomalies that
tables? should not appear in the
mortality data
3. If the plan sponsor pays the premium, which of the Long-term disability (LTD)
following group insured benefits is taxable to the
plan member?
4. Which of the following statements correctly de- Plan features of both con-
scribes phases of a group plan marketing? tributory and noncontrib-
utory benefit plans must
be communicated to plan
members during the enroll-
ment process
5. Which of the following statements correctly de- The loss must have financial
scribes a characteristic of an insurable risk? significance to the insured
(The loss must not be cata-
strophic to the insurer. Op-
tion C: The loss must occur
by chance. Option D: The loss
must be predictable for the
insurer.)
6.
, CEBS - GBA 1 - Practice Exam
Study online at https://quizlet.com/_j7iggk
With respect to marketing a group insurance plan, They are involved in en-
which of the following statements best describes in- rolling group members and
surer representatives known as account executives? installing new plans
7. Which of the following statements correctly de- Future probabilities of loss
scribes the statistical concept known as the law of are not valid unless a large
large numbers? number of incidents exist to
ensure the outcomes are less
likely to deviate
8. Which of the following statements correctly de- For self-insured plans with
scribes an insured plan that is insurer-administered? an administrative services
only (ASO) arrangement, the
insurer bills the plan spon-
sor monthly for administra-
tion fees
9. If the probability that an individual will live one year 0.855 (P (Survive both years)
is 0.95 and the probability of dying in the following = (0.95) x (1 - 0.1) = 0.95 x
year is 0.10, what is the probability that an individual 0.90 = 0.855.)
will survive both years?
10. Which of the following statements correctly de- An employee can enroll in
scribes the group benefits enrollment process for the plan any time between
new employees? his or her date of hire and
the end of a waiting period
11. A type of service offered under a third-party admin- Adjudicating and paying
istrators (TPAs) claims settlement only arrangement claims
is:
12. The plan member retires
(Unless otherwise specified
, CEBS - GBA 1 - Practice Exam
Study online at https://quizlet.com/_j7iggk
Unless otherwise specified in the group insurance in the group insurance con-
contract, a plan member's status under a group ben- tract, the order in which cov-
efits plan terminates the earliest at which: erage 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 ac-
tive work, and the plan mem-
ber is no longer a member of
an eligible class and premi-
um payments stop.)
13. Which of the following statements correctly de- Unmarried children under a
scribes eligibility requirements under most group in- specified age and depen-
surance plans? dent on the plan member for
support are eligible for cov-
erage
14. Which of the following statements correctly de- Once potential insurers are
scribes the negotiated placement method of market- identified, each company
ing a group benefits plan? submits a brief report that
highlights its general strat-
egy, philosophy and pro-
posed group benefits plan
15. True North Insurance has established a waiv- 12 years (Use the relation-
er-of-premium reserve of $100,000 and will have ship between future value
to pay out an optional life insurance benefit of and present value to solve for
$200,000. With an interest rate of 6% compounded the number of time periods.
annually, how many years will it take for the reserve FVt = PV x (1 + r)^t
of $100,000 to accumulate to $200,000? $200,000 = $100,000 x (1 +
