10128.56.  A qualified beneficiary electing continuation coverage
shall pay to the disability insurer, on or before the due date of
each payment but not more frequently than on a monthly basis, not
more than 110 percent of the applicable rate charged for a covered
employee or, in the case of dependent coverage, not more than 110
percent of the applicable rate charged to a similarly situated
individual under the group benefit plan being continued under the
group contract.  In the case of a qualified beneficiary who is
determined to be disabled pursuant to Title II or Title XVI of the
United States Social Security Act, the qualified beneficiary shall be
required to pay to the insurer an amount no greater than 150 percent
of the group rate after the first 18 months of continuation coverage
provided pursuant to this section.  In no case shall an insurer
charge an employer an additional fee for administering Cal-COBRA
other than those incorporated in the risk adjusted employee risk rate
as provided for in subdivision (t) of Section 10700.




10128.57.  (a) The continuation coverage provided pursuant to this
article shall terminate at the first to occur of the following:
   (1) In the case of a qualified beneficiary who is eligible for
continuation coverage pursuant to paragraph (2) of subdivision (d) of
Section 10128.51, the date 36 months after the date the qualified
beneficiary's benefits under the contract would otherwise have
terminated because of a qualifying event.
   (2) The end of the period for which premium payments were made, if
the qualified beneficiary ceases to make payments or fails to make
timely payments of a required premium, in accordance with the terms
and conditions of the policy or contract.  In the case of nonpayment
of premiums, reinstatement shall be governed by the terms and
conditions of the plan contract.

   (3) In the case of a qualified beneficiary who is eligible to
continuation coverage pursuant to paragraph (1), (3), (4), or (5) of
subdivision (d) of Section 10116.51, the date 36 months after the
date the qualified beneficiary's benefits under the contract would
otherwise have terminated by reason of a qualifying event.
   (4) The requirements of this article no longer apply to the
qualified beneficiary pursuant to the provisions of Section 10128.52.

   (5) In the case of a qualified beneficiary who is eligible for
continuation coverage pursuant to paragraph (2) of subdivision (d) of
Section 10128.51, and determined, under Title II or Title XVI of the
Social Security Act, to be disabled any time during the first 60
days of continuation coverage, and the spouse or dependent who has
elected coverage pursuant to this article, the date 36 months after
the date the qualified beneficiary's benefits under the contract
would otherwise have terminated because of a qualifying event.  The
qualified beneficiary shall notify the insurer, or the employer or
administrator that contracts to perform administrative services, of
the social security determination within 60 days of the date of the
determination letter and prior to the end of the original 36-month
continuation coverage period in order to be eligible for coverage
pursuant to this subdivision.  If the qualified beneficiary is no
longer disabled under Title II or Title XVI of the Social Security
Act, the benefits provided in this paragraph shall terminate on the
later of the date provided by paragraph (1), or the month that begins
more than 31 days after the date of the final determination under
Title II or Title XVI of the United States Social Security Act that
the qualified beneficiary is no longer disabled.  A qualified
beneficiary eligible for 36 months of continuation coverage as a
result of a disability shall notify the insurer, or the employer or
administrator that contracts to perform the notice and administrative
services, within 30 days of a determination that the qualified
beneficiary is no longer disabled.
   (6) In the case of a qualified beneficiary who is initially
eligible for and elects continuation coverage pursuant to paragraph
(2) of subdivision (d) of Section 10128.51, but who has another
qualifying event, as described in paragraph (1), (3), (4), or (5) of
subdivision (d) of Section 10128.51, within 36 months of the date of
the first qualifying event, and has notified the insurer, or employer
or administrator under contract to provide administrative services,
of the second qualifying event within 60 days of the date of the
second qualifying event, the date 36 months after the date of the
first qualifying event.
   (7) The employer, or any successor employer or purchaser of the
employer, ceases to provide any group benefit plan to his or her
employees.

COBRA in sale of a business willinghamcote.com -  bsg.com

   (8) The qualified beneficiary moves out of the insurer's service
area, or the qualified beneficiary commits fraud or deception in the
use of benefits.
   (b) If the group benefits contracts between the insurer and the
employer is terminated prior to the date the qualified beneficiary's
continuation coverage would terminate pursuant to this section,
coverage under the prior plan shall terminate and the qualified
beneficiary may elect continuation coverage under the subsequent
group benefit plan, if any, pursuant to the requirements of
subdivision (b) of Section 10128.53 and subdivision (c) of Section
10128.54.
   (c) The amendments made to this section by Assembly Bill AB 1401  of
the 2001-02 Regular Session shall apply to individuals who begin
receiving continuation coverage under this article on or after
January 1, 2003.

***AB 1401 Q & A


10128.58.  A disability insurer subject to this article shall not be
obligated to provide continuation coverage to a qualified
beneficiary pursuant to this article if an insured fails to make the
notification required by Section 10128.54, or if the employer of the
insured fails to comply with Section 10128.55.



10128.59.  (a) A health insurer that provides coverage under a group
benefit plan to an employer shall offer an insured who has exhausted
continuation coverage under COBRA the opportunity to continue
coverage for up to 36 months from the date the insured's continuation
coverage began if the insured is entitled to less than 36 months of
continuation coverage under COBRA.  The health insurer shall offer
coverage pursuant to terms of this article, including the rate
limitations contained in Section 10128.56.
   (b) Notification of the coverage available under this section
shall be included in the notice of the pending termination of COBRA
coverage that is required to be provided to COBRA beneficiaries and
that is required to be provided under Section 10128.54.
   (c) For purposes of this section, "COBRA" means Section 4980B of
Title 26 of the United States Code, Sections 1161 et seq. of Title 29
of the United States Code, and Section 300bb of Title 42 of the
United States Code.
   (d) This section shall not apply to accident-only, specified
disease, hospital indemnity, CHAMPUS supplement, long-term care,
Medicare supplement, dental-only, or vision-only insurance policies.

   (e) This section shall become operative on September 1, 2003, and
shall apply to individuals who begin receiving COBRA coverage on or
after January 1, 2003.