Legal Definitions - qualifying event

A qualifying event is a specific occurrence that, if not for the continuation-of-coverage provisions under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), would result in a loss of benefits for an employee covered under a qualified benefit plan.

Examples of qualifying events include:

• Termination of employment
• Reduction in work hours
• Separation or divorce of the employee
• Death of the employee
• Bankruptcy of the employer

These events can cause an employee to lose their benefits under a qualified benefit plan, but COBRA allows them to continue their coverage for a certain period of time.

For example, if an employee is terminated from their job, they may lose their health insurance benefits. However, if this is a qualifying event, COBRA allows them to continue their coverage for a certain period of time, usually up to 18 months.