If an Employer Were to Terminate Health Benefits as a Result

question 15

Multiple Choice

If an employer were to terminate health benefits as a result of one of the events below, which of the following would not be justified under COBRA?

• A)The covered individual fails to pay premiums on time.
• B)The employer no longer offers group health coverage to employees.
• C)The employee is terminated because of documented insubordination.
• D)An employee gets divorced, so the company immediately drops the health insurance for his ex-wife and minor children.

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, with holders having voting rights and potentially receiving dividends.

Shares

Units of ownership interest in a corporation or financial asset, affording certain rights such as dividends and voting rights.

Common Stock

An investment vehicle that indicates a partial ownership stake in a corporation, offering the investor voting privileges and a fraction of the company's profits in the form of dividends.

Par Value

The stated or par value of a bond, stock share, or coupon as indicated by the issuing entity.