COBRA: Interim Protective Order is not a Qualifying Event

Zeda Simpson v. T.D. Williamson Inc.,--- F.3d ----, 2005 WL 1607938, C.A.10 (Okla.),2005.

Issue: The issue in this case is whether an Oklahoma divorce court’s interlocutory protective orders requiring a husband, a “covered employee,” to stay away from his wife, a “qualified beneficiary,” pending their divorce qualified as a “legal separation,” thereby triggering COBRA’s notice requirement and the wife’s corresponding obligation to pay premiums in exchange for continued coverage.

RULE: The Tenth Circuit Court of Appeals held: "We conclude a “legal separation,” and thus a “qualifying event,” occurs within the meaning of COBRA §§ 1161(a) and 1163(3) only upon entry of a final court decree adjudicating the parties legal rights and obligations but preserving the marriage bond."

Facts: "Plaintiff filed for divorce in July 2000. Over the course of that summer, the divorce court entered three interlocutory protective orders requiring Plaintiff’s husband to stay away from her and the marital residence. Prior to entry of a final divorce decree, Plaintiff sent a letter
to TDW. Plaintiff requested that TDW reveal no information to her “estranged husband” about medical services she received. TDW concluded a “legal separation” had occurred based on plaintiff’s letter and the divorce court’s interlocutory orders. TDW determined the parties’ 'legal separation' was a 'qualifying event' under COBRA." ---- No premium payments were made by Plaintiff or her husband. TDW found there to exist a qualifying event and terminated Plaintiff's coverage. After the Divorce Decree was subsequently entered, Plaintiff sought COBRA coverage from TDW, which was denied based on prior termination. and reinstatement was denied.

Read the Decision.