GBARPA 3 Exam Questions and Answers

GBA/RPA 3 Exam Questions and Answers (Solved Papers) The 4 basic elements of an employee welfare benefit plan

are: - Correct Answers ✅1. there must be a plan, fund or

program

• the plan, fund or program is established or maintained by

an ER

• the plan, fund or program is for the purpose of providing

specifically listed benefits, through the purchase of insurance or otherwise

• benefits are provided to participants and beneficiaries

The courts have held that a plan, fund or program under ERISA is established if - Correct Answers ✅from the surrounding circumstances, a reasonable person can ascertain the intended benefits, the class of beneficiaries, the source of financing and the procedure to receive benefits Types of benefit plans that are not subject to ERISA

requirements: - Correct Answers ✅- governmental plans

• church plans 1 / 4

GBA/RPA 3 Exam Questions and Answers (Solved Papers)

• a plan maintained to comply with state laws on workers'

compensation, unemployment or mandated disability insurance

• a plan mandated outside the U.S. primarily for nonresident

aliens

• plans that cover only self-employed individuals and that

cover no "common-law employees"

• plans that cover only married shareholders of a corporation

An ERISA health and welfare plan provides: - Correct

Answers ✅- medical, surgical or hospital care or benefits

• benefits in the event of sickness, accident, disability, death

or unemployment

• vacation benefits
• apprenticeship or other training benefits
• day-care centers 2 / 4

GBA/RPA 3 Exam Questions and Answers (Solved Papers)

• scholarship funds
• prepaid legal services

The requirements for a voluntary benefit arrangement to be

exempt from ERISA are: - Correct Answers ✅- no employer

or employee organization contributions

• participation is completely voluntary
• no employer consideration except for reasonable

compensation and administration

• no employer endorsement

The main disclosure requirements under ERISA are: - Correct

Answers ✅- a plan document must exist for each plan

• a summary plan description (SPD) must be furnished

automatically to participants

• a summary of material modifications (SMM) must be

furnished automatically when a plan is amended 3 / 4

GBA/RPA 3 Exam Questions and Answers (Solved Papers)

• a four-page summary of benefits and coverage (SBC) must

be provided to applicants and enrollees before enrollment or reenrollment

• copies of certain plan docs must be furnished to participants

and beneficiaries upon written request

• claim procedures must be established and followed when

processing benefits claims and when reviewing appeals of denied claims

The main disclosure requirements for ERISA plan assets are: -

Correct Answers ✅- plan assets, including participant contributions, may be used only to pay plan benefits and reasonable admin costs

• for some plans, plan assets may be held in trust
• a fidelity bond must be purchased to cover every person

who handles plan funds DOL defines a material reduction in a health plan as any

modification or change that: - Correct Answers ✅-

eliminates benefits payable under the plan

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