Many people get life and health coverage through work, so the exam covers the federal rules that govern employer plans.
Group-term life insurance
An employer can generally exclude the cost of up to $50,000 of group-term life coverage from an employee's wages; the cost of coverage above that, less what the employee pays, is taxable. If the plan favors key employees in who can join or what they get, the entire cost of their coverage is included in their wages.
COBRA continuation
COBRA generally requires group health plans of employers with 20 or more employees in the prior year to offer employees and their families temporary continuation coverage. HSA funds may be used to pay COBRA premiums, one of the few insurance premiums an HSA can pay.
Cafeteria plans
A cafeteria plan lets employees choose between cash pay and certain benefits paid pre-tax. It can include accident and health benefits, dependent care assistance, adoption assistance, group-term life insurance and HSAs, but not long-term care insurance.
Dependent coverage
A group health plan that offers dependent coverage of children must make it available until the child turns 26, and may not limit it based on financial dependency or residency.
Accounts employers fund
An HRA is funded and owned only by the employer, and unused amounts carry forward. An FSA is funded by the employee's salary reduction and is "use it or lose it" unless the plan offers a grace period or a limited carryover.