CPP-Remote APA Certified Payroll Professional Free Practice Exam Questions (2026 Updated)

The Consolidated Omnibus Budget Reconciliation Act (COBRA) requires most employers with 20 or more employees to offer temporary continuation of group health coverage when such coverage would otherwise be lost due to a " qualifying event " . Standard qualifying events that trigger COBRA eligibility include the death of a covered employee (Option A), a reduction in the number of work hours (Option D), or the divorce or legal separation of the employee from their spouse (Option C). While termination of employment—whether voluntary or involuntary—is generally a qualifying event, there is a specific legal exception for " gross misconduct " . If an employee is terminated for reasons reaching the high legal threshold of gross misconduct, the employer is not required to offer COBRA continuation coverage to the employee or their dependents. However, because gross misconduct is not strictly defined by federal statute, employers must apply this exception carefully to avoid potential litigation.