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
A client was covered under a spouse's dental and vision plan. After divorce, COBRA continuation applies to which of these?
Answer: Both, if they were part of the employer group health plan
COBRA continuation applies to dental and vision coverage if those benefits were provided under the same group health plan as the medical coverage.
What happens to dependent children's coverage under COBRA when their parents divorce?
Answer: Children are qualifying beneficiaries and may elect COBRA independently
Dependent children are qualifying COBRA beneficiaries and may independently elect continuation coverage even if the employee-parent does not.
In a divorce settlement, a spouse is awarded a portion of the other spouse's 401(k). The QDRO specifies a dollar amount rather than a percentage. What risk does this create?
Answer: Market fluctuations may cause the account to fall below the specified dollar amount before distribution
A fixed-dollar QDRO exposes the alternate payee to market risk if the account value drops before the order is processed; a percentage-based division is generally safer.
A client receives alimony secured by the ex-spouse's life insurance. The ex-spouse dies and the policy has lapsed due to non-payment of premiums. What should the client's divorce attorney have done to prevent this?
Answer: Required the client to be named as owner of the policy, not just beneficiary
Making the alimony recipient the policy owner — not just the beneficiary — ensures they can pay premiums and prevent lapse without relying on the ex-spouse.
A divorcing spouse has been on the other spouse's employer health plan for 15 years. She is 62 years old. Which coverage gap is most critical for the advisor to address?
Answer: COBRA ends at 36 months, leaving a potential gap until Medicare eligibility at 65
At 62, a 36-month COBRA period could expire at 65 — exactly when Medicare begins — but advisors must plan for potential coverage gaps if Medicare eligibility is delayed.
Which of the following describes the 'alternate payee' in a QDRO?
Answer: The spouse, former spouse, child, or other dependent who is awarded a portion of the retirement benefit
Under ERISA, an alternate payee is the spouse, former spouse, child, or other dependent of the plan participant who is recognized as having a right to some or all of the plan benefits.
When negotiating insurance provisions in a divorce settlement, which principle best guides the CDA's recommendation regarding health insurance costs?
Answer: Assess the actual cost of replacement coverage for the uninsured spouse before finalizing support amounts
A CDA should obtain actual COBRA or marketplace premium quotes to ensure that support awards realistically cover the cost of replacement health coverage for the dependent spouse.