The change from a group health plan to an individual plan with the same insurer after employment ends is called what?

• A. Conversion
• B. Renewal
• C. Portability
• D. Lapse

Answer: (A)

The concept being tested is the conversion privilege from a group health plan to an individual policy with the same insurer when employment ends. When you leave a job, the employer’s group plan ends, but you typically have the option to convert that group coverage to an individual policy with the same insurer. This keeps your protection in place without a lapse in coverage and usually doesn’t require you to show you’re still insurable. You’ll pay the individual policy premium, which is often higher than the group rate since it’s underwritten as an individual plan. This is different from portability, which concerns moving coverage between jobs or maintaining coverage as you switch employers; conversion specifically refers to switching to an individual policy with the same insurer. A renewal simply continues the existing contract, and a lapse means coverage has ended due to something like nonpayment or the policy term ending.