COBRA (with out event)

[Guest Nautical]

Histocial plan allows a surv. spouse to have three years of additional coveage paid by the company

The three years expired in 2007

In January of 2007 a notice was sent to her stating should would be able to continue her coverage under COBRA.

COBRA forms were sent to the individual in December when the loss of coverage occured and she elected COBRA

We later determined that there was not a qualifying event AND a loss of covearage for her to elect COBRA (death was not in the last 30 days).

+She is on Medicare

Are we obligated to continue coverage for her or can she be removed from the plan?