Union Enterprises provides its 150 employees with a package of comprehensive benefits, including a company sponsored health insurance plan. All employees are covered the first day of employment. Union’s workforce is loyal and stable. You have recently been hired as the director of human resources. One of your clerks comes to you with a series of COBRA questions based on recent employee separations. How would you respond to the following questions?
- John Jacob, age 47, was terminated last week and has applied for continued health coverage. How long may he stay on the company plan? Explain.
- Timothy McFay, age 37, was terminated last month for deliberately starting a fire in the warehouse. While no one was injured, the company lost $175,000 in product that was about to be shipped to an important client. Mr. McFay has applied for continuing health coverage. Is he entitled to it? Explain.
- Holey Hunter, age 57, died last month due to complications from injuries sustained in an automobile accident. Holey’s husband, Harvey, has applied for continuing coverage under Union’s group health insurance. Is he entitled to coverage? Explain.
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