AD Banker Comprehensive Practice Exam

Which statement regarding COBRA is not true?

1. It provides continuation of coverage for 36 months for a surviving spouse

2. It covers participants who have resigned for 36 months following the date of their resignation

3. It provides continuation of coverage for 36 months for an individual losing dependent status

4. It provides continuation of coverage for 29 months for the disabled

The correct answer is: It covers participants who have resigned for 36 months following the date of their resignation

COBRA, which stands for the Consolidated Omnibus Budget Reconciliation Act, is a federal law that allows individuals to continue their health insurance coverage for a limited period after certain events. When evaluating the statements regarding COBRA, it’s important to understand the specific duration of coverage that the law stipulates based on different qualifying events. The assertion in question indicates that COBRA covers participants who have resigned for 36 months following their resignation. This is not accurate; while individuals may continue their health coverage after leaving a job, the standard duration for such coverage is actually 18 months for employees who leave due to voluntary resignation. The 36-month coverage period typically applies in scenarios involving dependents, specific qualifying events such as divorce, or the death of the covered employee. In contrast, other options correctly reflect the specifics of COBRA. For instance, surviving spouses and individuals losing dependent status both qualify for the 36-month extension, while those who are determined to be disabled can extend their coverage to 29 months, which is also permissible under COBRA provisions. Thus, understanding the nuances of how COBRA structures its continuation coverage periods helps clarify why the statement regarding 36 months for resigned participants is inaccurate.