Which statement about COBRA continuation is true?

• A. It guarantees coverage regardless of premium payment.
• B. It ends immediately when the employee enrolls in a new employer plan.
• C. It applies automatically to all employees without elections.
• D. It provides continuation only after a qualifying event and payment of premiums.

Answer: (D)

COBRA continuation is only available after a qualifying event and the person pays the required premiums. A qualifying event (like termination of employment or loss of hours) triggers the right to elect continuation, but you must actively elect COBRA and then keep paying the premium to maintain the coverage. It isn’t automatic or guaranteed without payment, and it ends if premiums aren’t paid, or when the maximum continuation period ends, or if you become eligible for another group plan.