10 free, exam-style Certified Employee Benefits Specialist (CEBS) practice questions with answers and explanations. No signup required. Work through them below, then take the full free CEBS practice test to study every exam domain.
These 10 free CEBS questions are organized by exam domain, so you can see how each part of the Certified Employee Benefits Specialist blueprint is tested. Reveal the answer and explanation under each question.
An employee is involuntarily terminated from her position. At the time of the qualifying event, the Social Security Administration has already issued a disability determination in her favor. Under COBRA, what is the maximum continuation coverage period available to her?
Correct answer: D - 29 months
An employee turns 65 and enrolls in Medicare Part A while continuing to work full-time and remaining covered by her employer's qualifying High Deductible Health Plan. What is the effect on her Health Savings Account?
Correct answer: C - She is no longer eligible to make contributions to her HSA
A self-funded employer is renewing its stop-loss coverage. The insurer identifies a plan participant who incurred $380,000 in claims over the prior plan year due to a chronic condition. At renewal, the insurer excludes this specific individual from stop-loss protection entirely. This practice is known as:
Correct answer: B - Lasering
An employer provides an employee with $175,000 in employer-paid group term life insurance. Which statement BEST describes the federal income tax treatment under IRC §79?
Correct answer: A - Coverage above $50,000 is subject to imputed income calculated using IRS Table I rates
A third-party administrator processes medical claims, issues explanation of benefits statements, and manages plan records under a written service contract that specifies all duties in advance. The TPA exercises no discretionary authority over plan assets or administration. Under ERISA, the TPA is best characterized as:
Correct answer: D - A party in interest, but not a plan fiduciary
An employee has worked for a covered employer for 11 months and has logged 1,300 hours over the preceding 12 months. She requests FMLA leave following the birth of her child. The employer lawfully denies the request. Which eligibility requirement has she failed to meet?
Correct answer: A - She has not completed 12 months of employment with this employer
A plan sponsor maintains a basic safe harbor 401(k) plan. An employee earning $90,000 per year elects to contribute 8% of her compensation. What is the employer's required matching contribution for the year?
Correct answer: C - $3,600
An employee enrolled in her employer's SIMPLE IRA plan 16 months ago. She recently terminated employment and takes a $30,000 cash distribution rather than rolling the funds over. No penalty exceptions apply. What is the early withdrawal penalty on this distribution?
Correct answer: A - $7,500
An investment committee is evaluating whether to replace one of ten individual equity funds offered within the plan's diversified investment lineup. Which performance metric is MOST appropriate for this comparison?
Correct answer: B - Treynor ratio - it adjusts for systematic risk only
A retirement plan sponsor engages an investment consultant who recommends a fund lineup for the plan. The plan's investment committee reviews each recommendation and retains full authority over all final selection decisions. What fiduciary role does the consultant hold under ERISA?
Correct answer: B - A 3(21) investment advisor serving as a co-fiduciary without discretionary authority
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