The new regulations

fiza gupta wrote:The new regulations mandate that a company allows their retiring employees who would otherwise lose group health care coverage to continue the same insurance at their own expense for a specific period

(A) that a company allows their retiring employees who would otherwise lose group health care coverage to continue
(B) companies to allow their retiring employees who would otherwise lose group health care coverage that they can continue
(C) that a company allow its retiring employees who would otherwise lose group health care coverage to continue
(D) companies allowing a retiring employee whose group health care coverage would otherwise be lost the continuation of
(E) companies to allow a retiring employee whose group health care coverage would otherwise be lost the continuation of

In A, their (plural) does not agree with a company (singular).
Eliminate A.

B: to allow their retiring employees...that they can continue
Here, the portion in red is unidiomatic.
CORRECT: to allow employees TO CONTINUE.
Eliminate B.

D and E: a retiring employee...at their own expense
Here, their (plural) does not agree with employee (singular).
Eliminate D and E.

The correct answer is C.

One purpose of the subjunctive mood is to express an action that is HYPOTHETICAL: an action that might not actually happen.
When we request an action from an OUTSIDE PARTY, we cannot be certain that the outside party will comply with our request.
Because the requested action might not actually happen, we use the COMMAND SUBJUNCTIVE.
The structure of the command subjunctive is as follows:
SUBJECT + BOSSY WORD + THAT + OUTSIDE PARTY + BARE INFINITIVE.
Bossy words are verbs such as propose, dictate, request, etc.
The bare infinitive is the infinitive form of a verb with the to omitted.

OA:
The new regulations mandate that a company allow its retiring employees who would otherwise lose group health care coverage to continue the same insurance at their own expense for a specific period.
Here:
Subject = the new regulations.
Bossy word = mandate.
Outside party = a company.
Bare infinitive = allow (to allow with the to omitted).

Thanku Sir!