State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Cal-COBRA, California's state continuation coverage law, provides:
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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.