An employer's group long-term disability policy is being discontinued. An employee is totally disabled on the date of discontinuance. Under CIC §10128, the employee is entitled to:
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Why A is correct
CIC §10128.1(e) defines extension of benefits as the continuation of coverage under a particular benefit following discontinuance with respect to an employee or dependent who is totally disabled on the date of discontinuance. California's group disability discontinuance provisions, CIC §10128.1 through §10128.4, protect employees who are already disabled when the employer's group policy ends. Rather than losing coverage at the moment of discontinuance, the totally disabled employee keeps receiving the benefit under the discontinued policy, and the employer generally must also offer conversion or replacement coverage to eligible employees.
Why the other options are wrong
- B) The statute exists precisely to prevent an immediate loss of benefits for employees who are disabled when the group policy ends. Extension of benefits keeps that coverage running for the totally disabled employee.
- C) Extension of benefits under CIC §10128.1(e) continues coverage for the employee totally disabled on the discontinuance date without requiring a new medical exam or proof of insurability at that moment.
- D) Discontinuance does not trigger a refund of premiums paid. The protection given to a totally disabled employee is continuation of the disability benefit, not a return of past premium payments; nothing in the article requires premium refunds.
Memory hook
Disabled when the group policy dies? CIC §10128 extends your benefits anyway.