Accident and Health Insurance Agent/Broker Practice Exam

The choice indicates that to elect continuation of coverage, the insured must request it in relation to significant life events such as death, divorce, or termination of employment. These events typically impact an individual’s eligibility for health insurance coverage under certain provisions in insurance laws, such as COBRA (Consolidated Omnibus Budget Reconciliation Act).

When a person experiences a qualifying event like divorce or termination of coverage from an employer, they may be eligible to continue their health insurance for a limited time. This is crucial because it allows the insured to maintain access to healthcare services during periods of transition that could otherwise result in a lapse of coverage.

In this context, the other choices listed do not pertain to health insurance or the continuation of coverage. Events like arraignment or indictment are related to the legal system and have no bearing on insurance coverage. Therefore, the focus on life changes specifically related to health insurance highlights the importance of understanding eligibility criteria for continuation benefits.