State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Under California law, when a group disability insurance policy is discontinued by the policyholder, the insurer must generally provide:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
CIC Sections 10128.1-10128.4 require that when a group disability policy is terminated or replaced, the insurer and policyholder must make conversion rights or a replacement plan available to eligible members. The purpose is to prevent a gap in coverage for people who relied on the group plan — a continuity protection unique to group insurance.
Why the other options are wrong
- B) The law addresses continuity of coverage, not refunds; earned premiums for the period in force are not refunded automatically.
- C) Conversion rights exist but generally remain subject to underwriting for disability coverage; they are not guaranteed-issue individual policies.
- D) There is no fixed 90-day extension mandate in these sections; the requirement is conversion/replacement availability, not a blanket benefit extension.
Memory hook
Group plan dies → members do not get left in the dark. Conversion or replacement is the lifeline the law throws.