GBA 3
GBA 3 Practice Exam Questions & Answers 100%
Correct
A global trend taking place in defined contribution retirement plans is: -
✔✔✔A. Greater reliance on plans with default investments
A pension plan investment carries an expense of 2 %. If the expenses are
decreased by 50 basis points, what will be the new level of expenses? -
✔✔✔D. 1.50%
A person's Social Security primary insurance amount (PIA) is which of the
following? - ✔✔✔E. The worker's monthly retirement benefit at full retirement
age
A recent Department of Labor audit quality study showed the percentage of
employee benefit plan audits that had "Unacceptable-Major" deficiencies
that adversely affected overall audit quality. This percentage was
approximately: - ✔✔✔D. 40%
A social security totalization agreement might be involved when an
employee takes an international assignment. Which of the following
statements best describes the purpose of this type of agreement? - ✔✔✔C.
The agreement provides relief from dual social security coverage and
taxation under both systems and integrates or synchronizes the benefits
earned under more than one system.
An initial Summary Plan Description must be distributed to participants
within how many days after the date the plan becomes subject to Employee
Retirement Income Security Act (ERISA) disclosure requirements? - ✔✔✔E.
120
Approximately how many individuals are working in occupations covered by
Social Security? - ✔✔✔E. 9 out of 10 workers
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,GBA 3
At a minimum, if there have been no material changes in the plan, the
Employee Retirement Income Security Act requires employers to prepare and
distribute new Summary Plan Descriptions to participants at least every: -
✔✔✔E. 10 years
Form 5500 and other financial reports statutorily must be kept for a
minimum of how many years after the filing date? - ✔✔✔D. Six
Generally, under best practice standards, how often should an Employee
Retirement Income Security Act investment committee meet? -
✔✔✔Quarterly or twice a year
Group health plans that provide dependent coverage must continue to make
such coverage available to an adult child up to the age of 26. Which of the
following statements regarding this coverage is correct? - ✔✔✔This coverage
must be available even if the child is married.
Hospice care benefits available under Medicare are for terminally ill persons
who have a life expectancy of how many months or less? - ✔✔✔Six months
How much are the civil penalties imposed by the Employee Retirement
Income Security Act against certified public accounting (CPA) firms that
perform deficient plan audits? - ✔✔✔Zero
Leaders in the data analytics industry developed a Healthcare Analytics
Adoption Model that has a number of levels of analytics adoption that an
organization passes through as it gains sophistication in using its data to
drive improvement. In this model, what is the highest level of sophistication?
- ✔✔✔Personalized medicine and prescriptive analytics
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, GBA 3
One of the basic disclosure documents required by the Employee Retirement
Income Security Act is the Summary of Benefits and Coverage. It must be
presented in a uniform format and cannot exceed how many double-sided
pages? - ✔✔✔4
Plan fiduciaries must understand the core difference between "active" and
"passive" investment strategies. Which of the following statements best
describes this difference? - ✔✔✔Passive funds typically seek to match the
performance of an index of securities, while active funds attempt to
outperform the market.
Provider network contracts of an administrative services only (ASO)
agreement for a self-funded health plan allow a limited time period for
recovering claims that were identified as overpaid. This period is usually: -
✔✔✔One year
Skilled nursing facility benefits under Medicare Part A are provided only if the
beneficiary has had a hospitalization of at least how many days? -
✔✔✔Seven days
The cost of an administrative claims audit in a self-funded health plan
typically will be: - ✔✔✔Less than 1% of total annual claim spending
The Federal Trade Commission (FTC) case against a medical transcription
services company dealt with the exposure of personal medical information.
According to the FTC, the settlement in this case demonstrated: - ✔✔✔That
companies must be held to high standards with regard to third-party vendor
management and oversight when it involves personal information
What is the highest rate at which Social Security benefits can be taxed,
depending on the person's income and tax bracket? - ✔✔✔85%
Page 3 of 21
®™
GBA 3 Practice Exam Questions & Answers 100%
Correct
A global trend taking place in defined contribution retirement plans is: -
✔✔✔A. Greater reliance on plans with default investments
A pension plan investment carries an expense of 2 %. If the expenses are
decreased by 50 basis points, what will be the new level of expenses? -
✔✔✔D. 1.50%
A person's Social Security primary insurance amount (PIA) is which of the
following? - ✔✔✔E. The worker's monthly retirement benefit at full retirement
age
A recent Department of Labor audit quality study showed the percentage of
employee benefit plan audits that had "Unacceptable-Major" deficiencies
that adversely affected overall audit quality. This percentage was
approximately: - ✔✔✔D. 40%
A social security totalization agreement might be involved when an
employee takes an international assignment. Which of the following
statements best describes the purpose of this type of agreement? - ✔✔✔C.
The agreement provides relief from dual social security coverage and
taxation under both systems and integrates or synchronizes the benefits
earned under more than one system.
An initial Summary Plan Description must be distributed to participants
within how many days after the date the plan becomes subject to Employee
Retirement Income Security Act (ERISA) disclosure requirements? - ✔✔✔E.
120
Approximately how many individuals are working in occupations covered by
Social Security? - ✔✔✔E. 9 out of 10 workers
Page 1 of 21
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,GBA 3
At a minimum, if there have been no material changes in the plan, the
Employee Retirement Income Security Act requires employers to prepare and
distribute new Summary Plan Descriptions to participants at least every: -
✔✔✔E. 10 years
Form 5500 and other financial reports statutorily must be kept for a
minimum of how many years after the filing date? - ✔✔✔D. Six
Generally, under best practice standards, how often should an Employee
Retirement Income Security Act investment committee meet? -
✔✔✔Quarterly or twice a year
Group health plans that provide dependent coverage must continue to make
such coverage available to an adult child up to the age of 26. Which of the
following statements regarding this coverage is correct? - ✔✔✔This coverage
must be available even if the child is married.
Hospice care benefits available under Medicare are for terminally ill persons
who have a life expectancy of how many months or less? - ✔✔✔Six months
How much are the civil penalties imposed by the Employee Retirement
Income Security Act against certified public accounting (CPA) firms that
perform deficient plan audits? - ✔✔✔Zero
Leaders in the data analytics industry developed a Healthcare Analytics
Adoption Model that has a number of levels of analytics adoption that an
organization passes through as it gains sophistication in using its data to
drive improvement. In this model, what is the highest level of sophistication?
- ✔✔✔Personalized medicine and prescriptive analytics
Page 2 of 21
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, GBA 3
One of the basic disclosure documents required by the Employee Retirement
Income Security Act is the Summary of Benefits and Coverage. It must be
presented in a uniform format and cannot exceed how many double-sided
pages? - ✔✔✔4
Plan fiduciaries must understand the core difference between "active" and
"passive" investment strategies. Which of the following statements best
describes this difference? - ✔✔✔Passive funds typically seek to match the
performance of an index of securities, while active funds attempt to
outperform the market.
Provider network contracts of an administrative services only (ASO)
agreement for a self-funded health plan allow a limited time period for
recovering claims that were identified as overpaid. This period is usually: -
✔✔✔One year
Skilled nursing facility benefits under Medicare Part A are provided only if the
beneficiary has had a hospitalization of at least how many days? -
✔✔✔Seven days
The cost of an administrative claims audit in a self-funded health plan
typically will be: - ✔✔✔Less than 1% of total annual claim spending
The Federal Trade Commission (FTC) case against a medical transcription
services company dealt with the exposure of personal medical information.
According to the FTC, the settlement in this case demonstrated: - ✔✔✔That
companies must be held to high standards with regard to third-party vendor
management and oversight when it involves personal information
What is the highest rate at which Social Security benefits can be taxed,
depending on the person's income and tax bracket? - ✔✔✔85%
Page 3 of 21
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