Insurance And Risk Management

Question 1

What does COBRA Stand 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

After divorce, how long can you maintain group health insurance coverage under COBRA?

Answer 3

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

Basis of Annuity transferred incident of divorce?

Answer 6

Due to 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

Tax deductible to payor

Income (taxable) to payee or recipient