State RegulationsNC specificDifficulty 2/5
A former employee is partway through North Carolina continuation coverage when the employer's group policy is terminated by the insurer. What happens under G.S. 58-53-35(b)?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under G.S. 58-53-35(a),(b), continuation ends at the earliest of the 18-month maximum, nonpayment of contribution, the member becoming eligible for similar group coverage elsewhere, or termination of the group policy itself. When the group policy terminates, the continuation ends and the conversion privilege under Article 53 becomes available, so the employee is not left without a path to individual coverage.
Why the other options are wrong
- A) Termination of the group policy is one of the statutory early-termination triggers; the continuation cannot outlive the master policy.
- C) North Carolina law provides no automatic transfer to a replacement group insurer chosen by the employee.
- D) Forfeiture with no options is wrong; the statute expressly preserves the conversion privilege when the group policy terminates.
Memory hook
When the master policy dies, continuation ends and conversion opens.