State RegulationsNC specificDifficulty 2/5
After losing eligibility for group health coverage, a North Carolina member elects the state continuation right and makes the required first contribution. Under G.S. 58-53-10, when does the continued coverage take effect?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under G.S. 58-53-10, a member may elect continuation of group hospital, surgical, or major medical coverage after termination of employment or loss of eligibility, with the first contribution due upon election. The continued coverage takes effect retroactively to the date of termination, so no gap in coverage exists as long as the election and contribution are timely made.
Why the other options are wrong
- A) The statute keys effectiveness to the termination date, not to a postmark.
- B) Coverage does not wait for the next calendar month; it reaches back to the termination date.
- D) Evidence of insurability is not required for state continuation; the member need only elect and contribute in time.
Memory hook
Elect and pay - coverage reaches back to day one.