An employer fails to give a terminating employee the required 15-day advance written notice of the right to convert group life coverage. What is the effect on the conversion period?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under CIC Section 10209(b), if an employee entitled to convert group life coverage to an individual policy is not given written notice of the conversion right at least 15 days before the conversion period expires, the employee has an additional period to exercise the right. That additional period expires 25 days after the notice is finally given, but in no event may it extend beyond 60 days after the expiration date of the period provided in the policy - here, the original 31-day conversion window. The statute also makes clear that the extension applies only to the time to apply for conversion, not to the continuation of the group coverage itself. Once proper notice is given, the standard 31-day period applies.
Why the other options are wrong
- B) The extension is a 25-day window measured from the date the late notice is given and subject to the statutory 60-day outer limit - not an automatic 31-day addition to the original period.
- C) The conversion right is not forfeited; it is extended precisely to remedy the harm caused by the missing notice.
- D) The conversion period is lengthened, never shortened, when the required notice was not given.
Memory hook
No 15-day heads-up means 25 more days, capped at 60 days past the original 31-day window.