COBRA Continuation Coverage: Insurance Exam Study Guide
Study COBRA qualifying events, qualified beneficiaries, election rules, costs, and common 18-, 29-, and 36-month exam scenarios.
COBRA is a federal continuation-coverage law that can let qualified employees and family members temporarily keep group health benefits after specified events would otherwise cause coverage to end.
Who and which plans COBRA generally covers
Federal COBRA generally applies to private-sector and state or local government group health plans sponsored by employers with at least 20 employees on more than half of typical business days in the previous calendar year. Separate state continuation laws may apply to smaller employers.
A qualified beneficiary is generally a covered employee, spouse or dependent child who was covered on the day before the qualifying event. Each qualified beneficiary can have an independent election right.
Qualifying events and maximum periods
The event must cause a loss of plan coverage. Memorize the core federal patterns, then check your state outline for additional continuation rules.
- Termination other than gross misconduct or a reduction in hours: commonly up to 18 months
- Disability extension when requirements are met: up to 29 months total
- Death, divorce or legal separation, certain Medicare-entitlement situations, or loss of dependent status: commonly up to 36 months for affected family members
- A second qualifying event can extend an initial 18-month period to as much as 36 months for eligible beneficiaries
Election, notice, and premium basics
The U.S. Department of Labor explains that an eligible person generally receives at least 60 days to elect COBRA, measured from the later of the coverage loss or election notice. Coverage is temporary but ordinarily preserves the same group health benefits available to similarly situated active participants.
The beneficiary may be required to pay the full cost of coverage plus a 2% administrative charge. During a qualifying disability extension, the permitted charge can be higher in some circumstances.
Typical exam traps
COBRA questions often turn on one exception or a change in who qualifies. Read the event, beneficiary, employer size, and timeline separately.
- Gross misconduct is treated differently from an ordinary termination.
- Federal COBRA and state continuation or “mini-COBRA” rules are not interchangeable.
- COBRA does not mean the former employer must continue paying the premium.
- Life insurance and disability-only benefits are not COBRA group health continuation coverage.
Turn the concept into exam points
Practice scenario questions, review every explanation, and use the full question bank when you are ready for state-specific preparation.
Related concept guides
Authoritative sources
Educational exam preparation only. State laws, plan terms, and current official guidance control specific situations.