CEBS GBA 2 LATEST ACTUAL EXAM
2024-2025 QUESTIONS AND DETAILED
CORRECT ANSWERS (VERIFIED
ANSWERS) | A+ GRADE STUDY GUIDE
Mr. Smith is insured in his company's group life insurance
plan. The plan is noncontributory and meets the
requirements of Internal Revenue Code Section 79. How
much group life insurance can be provided to Mr. Smith
without him incurring a federal income tax liability on the
value of his employer's contributions?
A.) 0
B.) 25,000
C.) 50,000
D.) 100,000
E.) An unlimited amount Correct Answer C.) 50,000
A medical group is paid fee-for-service up to a withhold
amount. The group is paid 75 percent at the time of
service and the remaining 25 percent is paid if the
managed care plan:
A.) Is able to cover its overall claim costs.
, B.) Covers the physician salaries.
C.) Anticipates providing less than two percent of out-of-
network benefits in the next computation period.
D.) Provides virtually 100% in-network benefits in the
computation period.
E.) Is efficient at recapturing capitation fees for late
subscriber terminations. Correct Answer A.) Is able to
cover its overall claim costs.
The health insurance rating system in which insurers place
policyholders into groups according to their loss producing
characteristics is known as:
A.) Calibrated rating
B.) Manual rating
C.) Durational rating
D.) General liability rating
E.) Objective rating Correct Answer B.) Manual rating
Developed countries other than the U.S. spend a much
lower proportion of their gross domestic product on health
care and enjoy better quality than the U.S. does. It is
widely believed by policy makers that one major reason for
this phenomenon is because:
A.) The medical educational programs are better in the
other countries.
,B.) The health care systems in such countries are built on
a strong primary care base.
C.) Other countries use much better technology than the
U.S. does.
D.) The U.S. has not made quality healthcare a high
priority.
E.) Other countries have healthier populations. Correct
Answer B.) The health care systems in such countries are
built on a strong primary care base.
The Affordable Care Act included several risk and market
stabilization programs. Which of the following is one of the
programs that dealt with limiting insurer losses and gains
beyond an allowable range?
A.) Reinsurance program
B.) Risk adjustment program
C.) Medical loss ratio program
D.) Risk corridor program
E.) Bidding process program for qualified health plans
Correct Answer D.) Risk corridor program
Which of the following is the approximate percentage of
the U.S. population covered in the specified U.S.
healthcare scheme?
A.) 40% through private individual insurance
B.) 25% through employer-sponsored group insurance
C.) 25% through the Medicaid program
D.) 20% through the Federal Employees Health Benefits
(FEHB) program
, E.) 15% through the Medicare program Correct Answer
E.) 15% through the Medicare program
Which of the following statements regarding health
insurance rating systems is (are) correct?
I. Both prospective and retrospective experience rating
use an employer's experience to calculate the insurance
rate.
II. With prospective rating, the insured, not the insurer,
bears the underwriting risk.
III. If experience in the year 20X1 is used to determine the
rate for the subsequent year, 20X2, this would be
retrospective rating. Correct Answer A.) I only
Which of the following statements regarding the loading
percentage for health insurance rates is (are) correct?
I. The loading percentage is lower for group health
insurance rates than it is for individual health insurance
rates.
II. The loading percentage is lower for small groups than
for large groups.
III. The Affordable Care Act imposes penalties on insurers
if their loading fees are too high. Correct Answer D.) I and
III only
Which of the following statements regarding low-cost,
retail health care clinics is (are) correct?
I. While low-cost, retail health clinics offered the promise
of lowering the cost of health care, actual experience has
been negative and the number of these clinics has been
declining.
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