Question

In which of the following events would COBRA rules apply for the benefit of the covered employee, employee's spouse, or dependent child?

The death of the covered employee
The covered employee is fired for incompetence
The employee changes status from full-time to part-time and, as a result, loses coverage
The covered employee gets a divorce
A) 1 only
B) 1 and 4
C) 2,3, and 4

Answer 1

COBRA rules extend health coverage benefits in cases such as the death of the employee, job loss not due to gross misconduct, reduction in work hours, and divorce or legal separation. Therefore, these rules apply to scenarios 1, 2, 3, and 4 as listed.

Step-by-step explanation:

The Consolidated Omnibus Budget Reconciliation Act (COBRA) provides eligible employees, their spouses, and dependent children the option of continued health coverage when an event causes them to lose their previous health benefits.

According to COBRA rules, coverage may be extended in the following events: the death of the covered employee, termination or reduction in hours of the covered employee's employment for reasons other than gross misconduct, change in the employee's status from full-time to part-time causing loss of coverage, and divorce or legal separation of a covered employee.

Based on the information provided, COBRA would apply in the following scenarios: the death of the covered employee, when the covered employee is fired for incompetence (assuming it is not deemed gross misconduct), when the employee changes status from full-time to part-time and loses coverage as a result, and when the covered employee gets a divorce.

Therefore, the correct answer to the question is that COBRA rules would apply in all the given events except for gross misconduct.