CDA Insurance & Benefits in Divorce 2

Question 1

Under COBRA, how long may a divorced spouse typically continue group health coverage?

Accepted Answer

36 months

Answer

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?

Accepted Answer

Employer-sponsored retirement plan

Answer

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?

Accepted Answer

COBRA

Answer

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?

Accepted Answer

Within 60 days of the divorce decree

Answer

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?

Accepted Answer

State law varies; some states revoke it automatically, others do not

Answer

Whether a divorce automatically revokes an ex-spouse's beneficiary designation depends on state law; advisors must verify the applicable state's rule.

(CDA) Certified Divorce Advisor Practice Test

(CDA) Certified Divorce Advisor Practice Test

CDA Insurance & Benefits in Divorce 2