Insurance and Risk Management

Question 1

COBRA stands for

Answer 1

COnsolidated Omnibus Budget Reconciliation Act

Question 2

COBRA applies to companies with how many employees

Answer 2

At least 20

Question 3

You are allowed to maintain group health insurance under COBRA provisions after divorce

Answer 3

for 36 months. Regular COBRA coverage is 18 months

Question 4

When must a company be notified that a divorce has taken place

Answer 4

Within 60 days - if you miss the deadline, the company does not have to provide coverage.

Question 5

What does COBRA coverage cost

Answer 5

1. The employee’s contribution to health insurance +
2. The employer’s contribution to health insurance +
3. A 2% administrative fee

Question 6

What is the basis of an annuity transferred incident to divorce

Answer 6

DUe Section 1041 of the IRC, the original basis transfers with the annuity

Question 7

For pre-2019 divorces, how is the payment of life insurance premiums ordered by the court

Answer 7

The premium would be tax-deductible to the payor and income to the recipient.