Final answer:
The true statement about unemployment insurance coverage is that it will cease if the person stops actively seeking employment. Funded by a federal tax on employers, unemployment benefits usually amount to about one-third of the individual's previous wages and are provided for a limited duration, typically 26 weeks.
Step-by-step explanation:
The true statement about unemployment insurance coverage is that it will stop if the person doesn't look for work. Unemployment insurance is a program funded through a federal tax collected from employers. Though the federal government mandates collection on the first $7,000 in wages paid to each worker, states can opt to tax a higher amount. States are given the flexibility to choose how long to pay benefits, typically capping at 26 weeks, with possible extensions during periods of high unemployment. The benefits paid are generally around one-third of a person's previous wages and vary across states.
Eligibility for these benefits requires that individuals be actively seeking employment. If it is found that an individual is not looking for work, their unemployment benefits will be discontinued. Moreover, the benefits often do not match the previous income from employment and are not intended to be a long-term solution, as they typically last up to six months.