Certified Disability Management Specialist (CDMS) 2025 – 400 Free Practice Questions to Pass the Exam

The correct answer highlights that an elective change to benefits outside of an enrollment period is permitted in the event of a qualifying life event. Qualifying life events typically include situations like marriage, divorce, birth or adoption of a child, or significant changes in employment status for both the employee and their spouse. These events are significant enough to warrant a change in healthcare or other benefits due to the impact they make on an individual's or family’s needs.

ERISA, or the Employee Retirement Income Security Act, provides a structured framework within which benefits can be adjusted, and it recognizes the need for flexibility in response to life changes. This flexibility ensures that individuals are able to update their benefits to best suit their current circumstances, thus playing a crucial role in benefit management.

The other options, while related to employment or benefits alterations, do not account for the life-altering nature of circumstances that classify as qualifying life events, thereby failing to provide a valid exception under ERISA's guidelines for making such changes outside of designated enrollment periods.