- Chosen by Voters Yes, it's a rule under IRS Sec. 104, Cafeteria plans. Below is a link to the list of qualifying events. It might help. The rule was made to prevent employees from not signing up for insurance unless something happened, and then signing up to cover just that event and then dropping the insurance again, etc..Donhttp://mtnhealthinsurance.com Source(s): http://mtnhealthinsurance.com/index.php?pageName=IRSSection125-4 3 years ago 100% 1 Vote