Oklahoma · Life, Accident & Health SampleInteractive Mind Map
COBRA and Continuation of Coverage
A visual breakdown of COBRA and Continuation of Coverage — one of the concepts you can count on seeing on the exam.
The TESTivity Interactive Mind Mapping Graphic we picked for the Oklahoma Life & Health sample is COBRA and Continuation of Coverage — and this is a concept you can count on seeing on your pre-licensing exam. Get the structure straight once and those questions turn into free points.
So explore it. Click through, see how the pieces relate, and let the layout do some of the remembering for you.
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COBRA is a bridge, not a destination — it lets you keep the EXACT SAME group plan after a qualifying event, but you pay the full freight.
Same plan, same network, same benefits — just at up to 102% of the group rate instead of the subsidized employee share.
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Who Must Offer It
Employers with 20 or more employees (fully insured OR self-insured). Government and church plans are generally exempt.
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Same Plan, Full Cost
The qualified beneficiary keeps the identical group plan but pays up to 102% of the group premium (full premium + 2% admin fee).
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Under 20? Mini-COBRA
Federal COBRA doesn’t apply below 20 employees — but many states have mini-COBRA laws giving similar (often shorter) continuation rights.
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Qualified Beneficiaries
Those covered immediately before the event: the employee, spouse, and dependent children. Children born or adopted during the COBRA period also qualify and can be added.
How they test this12-employee company → not federal COBRA (needs 20+), but possibly mini-COBRA under state law. And COBRA continues the same group plan — it never converts you to a different individual policy.
The single most tested COBRA distinction: which events give 18 months, and which give 36.
Shortcut: events that hit the employee’s job = 18 months; events that hit the family = 36 months.
⏱️ 18 Months
📅 36 Months
Job-related events
Termination (other than gross misconduct).
Family events (spouse/dependents)
Employee’s death.
Reduction in hours below the eligibility threshold.
Divorce or legal separation.
Who’s covered
Employee, spouse, dependents.
Employee’s Medicare entitlement; child loses dependent status (e.g., turns 26).
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Disability Extension: 18 → 29 months
If the SSA finds a qualified beneficiary disabled at the time of, or within 60 days of, the qualifying event, the 18-month period extends to 29 months for the whole family. Premium can rise to 150% during months 19–29.
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18 vs 36, decoded
18 months: job loss or reduced hours (the two common ones). 36 months: death, divorce/separation, Medicare entitlement, or a child aging out — the events that affect the spouse and dependents. The employee’s death gives the family 36 months, not 18.
COBRA runs on a clock of specific numbers — memorize them and the math questions are free points.
The election window is the most tested figure of all.
🧠 The COBRA Numbers20+ employees · 18 mo (job loss / reduced hours) · 36 mo (death, divorce, Medicare, dependent aging out) · 29 mo (disability extension, 150%) · 60 days to elect · 45 days for the first payment · up to 102% of premium.
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Notification Chain
Employer notifies the plan administrator within 30 days of the event; the administrator sends the election notice within 14 days.
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60-Day Election Period
The beneficiary has 60 days from the later of (1) the date coverage is lost or (2) the date the election notice is received. Elect within the window and coverage is retroactive — no gap.
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45-Day First Payment
After electing, 45 days to make the first (retroactive) payment. Subsequent monthly premiums get a 30-day grace period.
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Early Termination
COBRA ends early on: nonpayment, the employer dropping all group plans, the beneficiary getting other group coverage or Medicare, or the max period expiring.
The classic calculationCoverage lost Sept 1, election notice received Sept 15 → the 60 days run from the later date (Sept 15), so the deadline is about Nov 14. After electing, the first premium is due within 45 days (not the 30-day grace, which is for later months).
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Top Exam Tips — COBRA
1. 20+ employees triggers federal COBRA; under 20 may fall under state mini-COBRA. 2. COBRA continues the SAME group plan at up to 102% of premium (conversion gives a different individual policy). 3. 18 months = job loss or reduced hours; 36 months = death, divorce, Medicare, child aging out. 4. Disability extension: 18 → 29 months, premium up to 150% in months 19–29. 5. 60 days to elect (from the LATER of coverage loss or notice receipt; coverage is retroactive); 45 days for the first payment. 6. Early termination: nonpayment, new group coverage, Medicare entitlement, or the employer dropping all plans.
Exam vocabulary
Key Terms to Know
COBRA
Federal law requiring group plans of employers with 20+ employees to offer continuation coverage after qualifying events.
Qualifying Event (COBRA)
An event causing a covered person to lose group coverage and triggering COBRA election rights.
Qualified Beneficiary
A covered employee, spouse, or dependent child with the right to elect COBRA after a qualifying event.
COBRA Election Period
60 days from the later of the date coverage ends or the election notice is received; election makes coverage retroactive.
COBRA Premium
Up to 102% of the group rate (full premium + 2% admin fee); 45 days for the first payment after election.
18-Month COBRA Period
Applies to job termination (not gross misconduct) and reduction in hours.
36-Month COBRA Period
Applies to the employee’s death, divorce/separation, Medicare entitlement, or a child losing dependent status.
COBRA Disability Extension
Extends 18 months to 29 if a beneficiary is SSA-disabled at or within 60 days of the event; premium up to 150% in months 19–29.
Mini-COBRA
State continuation laws giving COBRA-like rights to employees of employers with fewer than 20 employees.
45-Day Premium Payment
After electing COBRA, the beneficiary has 45 days to make the first (retroactive) premium payment.
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