CDA Insurance & Benefits in Divorce 2 — Questions and Answers
Question 1: Under COBRA, how long may a divorced spouse typically continue group health coverage?
- 12 months
- 18 months
- 36 months (Correct answer)
- 60 months
Correct answer: 36 months
COBRA allows a divorced or legally separated spouse to elect continuation coverage for up to 36 months.
Question 2: A QDRO (Qualified Domestic Relations Order) is used to divide which type of benefit?
- Life insurance death benefit
- Social Security income
- Employer-sponsored retirement plan (Correct answer)
- Health savings account contributions
Correct 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.
Question 3: Which federal law governs an employee's right to continue health insurance after a qualifying life event such as divorce?
- ERISA
- COBRA (Correct answer)
- HIPAA
- ACA
Correct answer: COBRA
COBRA (Consolidated Omnibus Budget Reconciliation Act) provides continuation health coverage rights following qualifying events including divorce.
Question 4: When must a divorcing spouse notify the health plan administrator of the divorce to trigger COBRA rights?
- Within 30 days of the divorce decree
- Within 60 days of the divorce decree (Correct answer)
- Within 90 days of the divorce decree
- Within 12 months of the divorce decree
Correct 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.
Question 5: 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?
- The designation is automatically revoked in all states
- Federal law removes the ex-spouse automatically
- State law varies; some states revoke it automatically, others do not (Correct answer)
- The insurer is required to notify both parties and update the form
Correct 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.
Question 6: A self-employed spouse has no employer group plan. After divorce, the dependent spouse should primarily look to which option for health coverage?
- Medicaid only
- ACA marketplace plan (Correct answer)
- Medicare Part B
- VA benefits
Correct 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.
Question 7: Which of the following is NOT a type of benefit typically addressed in divorce settlement negotiations?
- Pension survivor annuity rights
- Flexible spending account balances
- Workers' compensation future benefits (Correct answer)
- Social Security spousal benefits
Correct 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.
CDA Insurance & Benefits in Divorce 2
Under COBRA, how long may a divorced spouse typically continue group health coverage?