Common use of Duration of Continuation Coverage Clause in Contracts

Duration of Continuation Coverage. The maximum period coverage can be continued depends on the qualifying event. Continuation coverage may be terminated earlier as shown below. The maximum period of continuation coverage starts on the day of the qualifying event. a. Maximum period (1) Termination and reduced hours. The maximum period of continuation coverage is 18 months. If a second qualifying event, other than the Employer’s bankruptcy, occurs during the 18 months, the maximum period of continuation coverage is 36 months. (2) Disabled Covered Employee, Covered Dependent spouse or Covered Dependent child. If the Covered Employee, Covered Dependent spouse or other Covered Dependent is disabled under Title II or XVI of the Social Security Act, at the time of the termination of employment, or reduced hours of the Covered Employee, or within the first 60 days of continuation of coverage, the 18-month maximum continuation period may be extended to 29 months. The disabled person must notify the Plan Sponsor within 60 days of the date of determination of disability, and within the initial 18-month continuation period. If a second qualifying event (other than bankruptcy) occurs during the extended 29-month period, the maximum period of continuation coverage is 36 months.