Alan's Position Was Eliminated and He Was Downsized from His

question 41

Multiple Choice

Alan's position was eliminated and he was downsized from his employer. At the time he left he was enrolled in the employer's health and dental plans. Alan and his wife can continue their coverage through COBRA for:

• A) 12 months.
• B) 18 months.
• C) 20 months.
• D) 36 months.
• E) indefinitely as long as they pay the full premium.

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Definitions:

Drawer's Account

Refers to the account from which a check is drawn; the account belongs to the drawer (the person who writes the check).

Payee

A payee is a person or organization to whom money is paid or is to be paid.

Check

A written order instructing a bank to pay a specified amount of money from the writer's account to the person or entity in whose name the check has been issued.

Certificate Of Deposit

A savings certificate with a fixed maturity date and specified fixed interest rate that is issued by a bank.