5
AssignmentMultiple Choice

Asset-backed Securities, Loan Sales, and Derivatives

Question 5 • (AG Q4) Financial Literacy: 25-26 (JRush)

The COBRA Act allows employees who leave a company to continue insurance _____.

Answer
A
indefinitely
B
without exception
C
based on a qualifying event
D
if they are being treated for a health condition

Explanation

COBRA lets eligible employees and their dependents temporarily continue group health insurance after certain qualifying events, such as job loss or reduced work hours. The continuation is not indefinite, and eligibility does not depend on whether the employee is being treated for a health condition. Therefore, the correct choice is “based on a qualifying event.”

AI-written and checked against the verified answer.

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