Can COBRA rights be exercised if the employee is on layoff without a definite recall date?

• A. No
• B. Only with special approval
• C. Only if recalled
• D. Yes; layoff is typically a qualifying event if it results in loss of group health coverage

Answer: (D)

When a qualifying event happens, you’re given the option to continue coverage under COBRA. The key idea is that the event must cause a loss of group health coverage. A layoff typically ends an employee’s eligibility for the employer’s health plan, so it is treated as a qualifying event that allows COBRA rights to be exercised. The scenario here—layoff without a definite recall date—reinforces that loss of coverage is anticipated, making COBRA continuation available. In practice, whether a recall date changes the treatment can vary by plan, but the general rule tested is that layoff leading to loss of coverage triggers COBRA rights, allowing you to elect continuation coverage.