100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
CEBS - GBA 1 - Practice Exam Questions and Answers $12.49   Add to cart
Quickly navigate to
Preview
  2.  
  3. Prep Tests
  4.  
  5. Prep Tests

Exam (elaborations)

CEBS - GBA 1 - Practice Exam Questions and Answers
 0 view  0 purchase
  • Course
  • Prep Tests
  • Institution
  • Prep Tests

CEBS - GBA 1 - Practice Exam Questions and 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? - ANSWER-The more unpredictable the event that will trigger a claim,...

[Show more]

Preview 3 out of 24  pages

Document information

  • November 10, 2024
  • 24
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

  • cebs gba 1 practice exam questions and answers

Written for

  • Prep Tests
  • Prep Tests

Seller

avatar-seller
OliviaWest

Reviews received

Content preview

Copyright © OLIVIAWEST 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED




CEBS - GBA 1 - Practice Exam Questions

and 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? - ANSWER✔✔-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? - ANSWER✔✔-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? - ANSWER✔✔-Long-term disability (LTD)


Which of the following statements correctly describes phases of a group plan marketing? - ANSWER✔✔-

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? -

ANSWER✔✔-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.)




Copyright ©Stuvia International BV 2010-2024 Page 1/24

, Copyright © OLIVIAWEST 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED


With respect to marketing a group insurance plan, which of the following statements best describes

insurer representatives known as account executives? - ANSWER✔✔-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? - ANSWER✔✔-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? -

ANSWER✔✔-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? - ANSWER✔✔-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? - ANSWER✔✔-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: - ANSWER✔✔-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: - ANSWER✔✔-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



Copyright ©Stuvia International BV 2010-2024 Page 2/24

, Copyright © OLIVIAWEST 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED


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? - ANSWER✔✔-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? - ANSWER✔✔-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? - ANSWER✔✔-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


$200,000/$100,000 = (1.06)^t


2.00 = (1.06)^t




The number of time periods can be approximated using the future value table. With an interest rate of

6%, it will take 12 years to accumulate to a sum of $200,000 (or 2.01220).)




Copyright ©Stuvia International BV 2010-2024 Page 3/24

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller OliviaWest. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $12.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

78252 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$12.49
  • (0)
  Add to cart