PassSprint
State RegulationsCA specificVerified · outline & fact-checked · Sep 2026Difficulty 2/5

Cal-COBRA, California's state continuation coverage law, provides:

Select an option to reveal the answer and the full 3-part explanation — free, no signup.

Answer & full 3-part explanation (select an option above, or peek)

Why A is correct

Cal-COBRA extends continuation coverage to employees, spouses, and dependents of small employers in California. Federal COBRA generally applies to employers with 20 or more employees, so Cal-COBRA fills the gap for small employers, allowing those who lose group coverage to continue it for a defined period by paying the premium. Agents must be familiar with both federal COBRA and Cal-COBRA because the applicable rules depend on the employer's size.

Why the other options are wrong

  • B) Cal-COBRA is private continuation coverage financed by the premiums of those who elect it, not a government-run plan.
  • C) Medicare is a federal program for the elderly and disabled; Cal-COBRA is unrelated to Medicare.
  • D) Cal-COBRA continues existing group coverage; it does not subsidize premiums for individual market policies.

Memory hook

Federal COBRA starts at 20 employees; Cal-COBRA fills the gap for California's small groups.

Related Practice Questions