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Which of the Following Is the Penalty for an Employer

Question 30

Multiple Choice

Which of the following is the penalty for an employer who fails to comply with COBRA requirements?

A) The employer may be required to pay up to 10 percent of the annual cost of the group plan or $500,000, whichever is less.
B) The employer may be required to pay up to 20 percent of the annual cost of the group plan or $300,000, whichever is less.
C) The employer may only be required to pay up to 10 percent of the annual cost of the group plan.
D) The employer may only be required to pay up to 20 percent of the annual cost of the group plan.
E) The employer may only be required to pay up to a fee of $50,000.

Correct Answer: