Under California's group disability discontinuance rules, 'extension of benefits' is defined as:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
CIC §10128.1(e) defines extension of benefits in the group disability discontinuance context 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. In other words, a member who is already totally disabled when the group policy terminates keeps receiving that benefit for as long as the contract provides, rather than being cut off mid-claim. This is a CA-specific statutory definition within the group disability discontinuance article (AH-I.C.4). Because the tested rule is California law, the question is marked state=CA.
Why the other options are wrong
- B) The statutory definition addresses continuation of disability benefits for members who are totally disabled on the discontinuance date. The premium grace period is a separate contract provision that governs late premium payments and is unrelated to benefit continuation.
- C) Extension of benefits preserves an existing benefit for a member already in a disability claim. It does not increase benefit amounts for other members, and it does not expand the coverage of members who are not totally disabled on the discontinuance date.
- D) Conversion to an individual policy is a different statutory concept that provides members a path to individual coverage. Extension of benefits is the continuation of the group benefit already in force for a totally disabled member, not a conversion of the group policy itself.
Memory hook
Extension of benefits keeps paying someone already totally disabled when the group plan dies.