10 free, exam-style Certified Benefits Professional (CBP) practice questions with answers and explanations. No signup required. Work through them below, then take the full free CBP practice test to study every exam domain.
An employee's spouse and children lose coverage under the employer's group health plan because the employee and spouse divorce. Under COBRA, what is the maximum continuation coverage period available to the divorced spouse?
Correct answer: C - 36 months
An employee is leaving the company and asks which of their benefit accounts they get to keep. For which account does the unused balance belong to the employee and remain with them after they leave?
Correct answer: D - A health savings account (HSA)
An employer provides every employee with $100,000 of company-paid group-term life insurance at no cost to the employee. Under IRC Section 79, how is this coverage generally treated for federal income tax purposes?
Correct answer: A - Only the cost of coverage above $50,000 is imputed income
A cash balance plan expresses each participant's benefit as a hypothetical individual account that grows with annual pay credits and interest credits, so it looks like a 401(k). For legal and regulatory purposes, a cash balance plan is classified as which type of plan?
Correct answer: B - A defined benefit plan
An employer pays 100% of the premiums for its long-term disability (LTD) plan using pre-tax dollars, and employees contribute nothing. If an employee later becomes disabled and begins receiving LTD benefit payments, how are those payments generally treated for federal income tax?
Correct answer: A - The benefits are taxable income to the employee
A company's 401(k) plan repeatedly fails the Actual Deferral Percentage (ADP) test because its highly compensated employees defer at much higher rates than other employees. Which plan design change would allow the company to avoid ADP/ACP testing entirely?
Correct answer: C - Adopt a safe harbor 401(k) design
A self-funded employer wants to limit its financial exposure if a single covered individual incurs an extremely large, catastrophic claim during the plan year. Which type of stop-loss coverage is designed to address this particular risk?
Correct answer: D - Specific (individual) stop-loss coverage
A company is redesigning its rewards to better support employees' physical, financial, emotional, and social health. Within WorldatWork's Total Rewards model, these programs fall primarily under which element?
Correct answer: C - Well-Being
A benefits manager is planning a communication campaign for a major plan change and is deciding which channels to use (email, printed guides, in-person meetings, and so on). According to a strategic communication planning process, which step should be completed BEFORE selecting the communication channels?
Correct answer: D - Identify and analyze the target audience
An employer hires a third-party administrator to handle recordkeeping and day-to-day administration for its 401(k) plan. With respect to ERISA fiduciary responsibility, what is the employer's continuing obligation after delegating these tasks?
Correct answer: B - The employer must prudently select and monitor the service provider
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