Cebs gba stuvia - Study guides, Class notes & Summaries

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...

Broad view of Employee Benefits - ANSWERThis view sees employee benefits as virtually any form of compensation other than direct wages. Components of the Broad view of Employee Benefits - ANSWER1. Employer's share of legally required payments (Social Security and Medicare, unemployment insurance, and worker's compensation benefits) 2. Payments for time not worked (e.g. paid rest periods, paid sick leave, paid vacations, holidays, parental leave, etc). 3. Employer's share of medica...

3 Types of Hazard - ANSWER1. Physical 2. Moral 3. Morale Advantages of Using Insurance for EE Benefit Plan - ANSWER1. Known premium (control over budget) 2. Outside administration (disputes handled by insurance company) 3. Financial backing (employees may prefer outside funding) 4. Cost management 5. Economy (insurance company can do the job more efficiently and at a lower cost) Adverse Selection - ANSWERExists when individuals who have higher than average risks join a group because...

1.1 - If premium is $1,000 and loading fee is 40%, what is the gross premium? - ANSWERThe gross premium = pure premium divided by (1-loading%). $1000/(1-.40=.60), $1000/.60=$1,666.67. The gross premium is $1,666.67. 1.2 What is included in the loading percentage? - ANSWERit includes objective risk, profit and costs of marketing, adjudicating and processing claims, coordinating benefits and providing access to networks. In other words, all costs other than losses and loss adjustment expenses.T...

Broad View of Employee Benefits - ANSWERAny form of compensation other than direct wages Narrow View of Employee Benefits - ANSWERAny type of plan sponsored or initiated, unilaterally or jointly, by employers and employees engaged in providing benefits that result from the employment relationship Categories of Benefits under the Broad View - ANSWER(a) Legally required benefits. (b) Payments for time not worked. (c) Employer's share of medical benefits. (d) Employer's share of reti...

Adjusted community rating - ANSWERNot giving credit to a plan for favorable risk attributes associated with a healthy population. This makes health insurance more affordable for those with higher risk. Administrative enhancements when opting to self-fund - ANSWERMore transparency and use of bundled pricing and direct contracting to reduce claims costs Aggregate stop-loss insurance - ANSWERThis policy caps how much an employer is obligated to pay for all its claims across a full plan year. ...

Broad view of Employee Benefits (Mod 1.1) - ANSWERSConsiders Employee Benefits to be virtually any form of compensation other than direct wages paid to Employees (Ex: WC, Unemployment, State DI, SS, Vacation, Holidays, 401K/Retirement, Employer share of Medical, Severance Pay, Child Care, etc..) Narrow view of Employee Benefits (Mod 1.1) - ANSWERSAny type of plan sponsored or initiated by Employees and Employers and engaged in providing benefits that result from the employment relationship an...

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? - ANSWERSThe 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? - ANSWERSIt is a mathematical process that removes anomalies that should not appear ...