The provisions for terminating an individual's coverage vary according to the type of group and how the employer wants the plan administered. Explain the various components of termination of coverage

What will be an ideal response?

Answer:
In a union or association group, for example, coverage terminates when the employer terminates the group's membership in the union or association. The most common termination provisions are those based on conditions pertaining to employment. Coverage is usually terminated under one of these conditions:
• The group policy terminates (i.e., a company terminates the policy).
• The policy is amended to terminate the eligibility of the class of employees to which the individual belongs (i.e., the employer decides they will no longer cover commissioned sales people).
• The employee transfers out of a class covered by the policy (i.e., an employee goes from full-time to part-time).
• Active employment ceases (i.e., the employee quits).
• The employee ceases to pay the required contributions for the coverage.