Group Life & AnnuitiesQuestion 686 of 716
Federal COBRA generally lets an eligible employee who loses group health coverage continue it for a limited time by:
a.Enrolling immediately in Medicare
b.Receiving free coverage for life
c.Paying the full premium themselves (up to 102% of cost) for a stated period such as 18 months
d.Paying nothing at all for the continued coverage, since the former employer must keep funding it in full
Explanation
COBRA allows continuation of the group health plan if the former employee pays the full premium plus up to a 2% administrative charge, commonly for 18 months. It is not free or permanent, and it is separate from Medicare.
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Related questions on this topic
- When an employee leaves a job covered by group term life, the conversion privilege usually allows them to convert to:
- A key advantage of the group life conversion privilege is that the departing employee:
- Under federal tax rules, employer-paid group term life premiums are tax-free to the employee only up to ________ of coverage; the cost of coverage above that is taxable income to the employee:
- Which is a COBRA qualifying event that can extend continuation up to 36 months for dependents?
- COBRA generally applies to employers with:
- A Section 125 cafeteria plan allows employees to:
Last reviewed: · editorial process
PrepPass team · Verified against California Life & Health Insurance License Exam · How we review
Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)