California Life-Only & Accident and Health AgentCalifornia Law - Life and Accident & HealthHard
A small business in California offers a group Accident and Health policy to its employees. If an employee's employment is terminated, what is the minimum period of continuation of benefits that must be offered to the employee under California's Cal-COBRA law, assuming the employer has 2 to 19 employees?
- A36 months
- B18 months
- C29 months
- D60 months
Show answer & explanationAnswer & explanation
Correct answer: A. 36 months
Under Cal-COBRA (which applies to employers with 2 to 19 employees), eligible individuals are generally entitled to continue their group health coverage for a maximum of 36 months following a qualifying event such as termination of employment.
Why the other options are wrong
- B. 18 months is the standard duration for federal COBRA for termination of employment, but Cal-COBRA extends this.
- C. 29 months is an extended period under federal COBRA for disability, not standard termination.
- D. 60 months is not a standard Cal-COBRA or federal COBRA continuation period for termination.
Cal-COBRA Continuation (Termination)
California's state law requiring continuation of group health coverage for employees and their dependents after certain qualifying events, specifically for employers with 2-19 employees.
- Applies to employers with 2-19 employees.
- Qualifying event includes termination of employment (for reasons other than gross misconduct).
- Maximum continuation period is 36 months for termination.
Memory trick: Cal-COBRA for 'Small' employers (2-19) gives '36 months' of health shield after job loss.