State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
An employer discontinues its group life insurance plan. Under California Insurance Code Sections 10128.1-10128.4, eligible group members must be offered:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
When a group life insurance policy is discontinued, California law requires the insurer to offer eligible members conversion to an individual policy or another form of continued coverage, generally without a new medical examination. This protects employees from losing life coverage when their group plan ends, regardless of health changes since the group coverage began.
Why the other options are wrong
- B) Premiums paid for past coverage are not refunded; the protection is the right to continue coverage.
- C) The insurer must offer conversion or continuation, not a replacement group plan at a higher price.
- D) Group members receive statutory conversion rights when the group policy is discontinued.
Memory hook
Group plan ends, coverage persists: conversion rights keep members covered when the master policy dies.