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The right of an employee to exchange Group Insurance for an Individual policy within 31 days from termination of employment is provided by the ______ provision?

A. Conversion.
B. Portability.
C. Continuation.
D. Replacement.

User Ikottman
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1 Answer

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Final answer:

The Conversion provision allows an employee to change Group Insurance to an Individual policy within 31 days of employment termination, ensuring continuity of health coverage after leaving a job.

Step-by-step explanation:

The right of an employee to exchange Group Insurance for an Individual policy within 31 days from termination of employment is provided by the Conversion provision. Private insurance, whether it's employment-based or direct-purchase, often includes a set of provisions that dictate how coverage is handled upon leaving employment. The Conversion provision ensures that employees can retain health insurance coverage without losing the benefits they have already paid into, even when no longer employed by the company that offered the group plan.

This option is critical for individuals because it allows continuity of coverage. Employment-based insurance is a key benefit for many workers, and losing it can lead to significant gaps in healthcare protection; hence, the Conversion provision serves as a safeguard for those in transition.

User Zsolt Meszaros
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