An Employee Is Terminated for Poor Attendance

question 3

Multiple Choice

An employee is terminated for poor attendance. The employer sends a letter on May 1 notifying him of his right to receive continuation health insurance coverage.  The letter states that the former employee must respond by May 30 to be eligible for up to 6 months of continuation coverage.  The employer's letter:

• A)accurately states the former employee's rights under COBRA
• B)should state that the employee has 45 days to decide on coverage that would last up to 3 years
• C)should state that the employee has 60 days to decide on coverage that would last up to 3 years
• D)should state that the employee has 60 days to decide on coverage that would last up to 18 months

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Definitions:

Savings Account

A bank account that earns interest and is typically used for holding money that is not intended for daily expenses.

Accumulated Amount

The total sum including the principal and the compounded interest over a period.

End-Of-Quarter Payments

Payments that are made at the conclusion of a fiscal quarter, often related to financial obligations such as loans or leases.

Annuity

A fiscal product designed to disburse a static sequence of payments to someone, chiefly utilized as a means for generating income during retirement.