Insurance & Benefits in Divorce Flashcards
7 cards from real CDA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Insurance & Benefits in Divorce flashcards as text
Under COBRA, how long may a divorced spouse typically continue group health coverage?
Answer: 36 months
COBRA allows a divorced or legally separated spouse to elect continuation coverage for up to 36 months.
A QDRO (Qualified Domestic Relations Order) is used to divide which type of benefit?
Answer: Employer-sponsored retirement plan
A QDRO is specifically designed to divide employer-sponsored retirement plans such as 401(k)s and pensions without triggering early withdrawal penalties.
Which federal law governs an employee's right to continue health insurance after a qualifying life event such as divorce?
Answer: COBRA
COBRA (Consolidated Omnibus Budget Reconciliation Act) provides continuation health coverage rights following qualifying events including divorce.
When must a divorcing spouse notify the health plan administrator of the divorce to trigger COBRA rights?
Answer: Within 60 days of the divorce decree
The qualified beneficiary or the employee must notify the plan administrator of the divorce within 60 days to preserve COBRA election rights.
A spouse named as beneficiary on a life insurance policy owned by the other spouse — what happens to that designation after divorce if the policy owner takes no action?
Answer: State law varies; some states revoke it automatically, others do not
Whether a divorce automatically revokes an ex-spouse's beneficiary designation depends on state law; advisors must verify the applicable state's rule.
A self-employed spouse has no employer group plan. After divorce, the dependent spouse should primarily look to which option for health coverage?
Answer: ACA marketplace plan
Divorce is a qualifying life event that triggers a Special Enrollment Period on the ACA marketplace, allowing the dependent spouse to obtain individual coverage.
Which of the following is NOT a type of benefit typically addressed in divorce settlement negotiations?
Answer: Workers' compensation future benefits
Workers' compensation benefits are generally not divisible marital property because they compensate for personal injury and are not considered earned income or marital assets in most states.