Occasionally, because of frantic schedules and the ups and downs of every day business life, your payment may not make it on time. But it’s important to remember that late or missed payments could affect your group’s coverage.
This section is intended to help you understand what to expect regarding your payments so that you can make sure your group’s coverage continues without interruption.
A group contract or policy can be cancelled on the last day of any month by giving written notice to us at least 30 days in advance. We must receive prior notification of group cancellation as indicated in the group contract or group policy. Otherwise, an insured group is held liable for the premium covering the 31-day grace period, even if other coverage has been obtained. This applies to cancellation of the group contract or policy on or off the renewal date.
Non-payment of Premiums – Insured groups
Premiums must be received by us before the end of the 31-day grace period. Should full payment not be received during the grace period, coverage will be terminated as of the end of the grace period. The group will be responsible for payment of the grace period premiums should cancellation due to non-payment occur, even if no claims were incurred. All claims incurred after the expiration of the grace period will be denied.
Self-funded groups should refer to their group policies for information regarding cancellation.
If two of a group’s monthly premium checks are returned within a 12-month period for insufficient funds, closure of an account, an unauthorized signature or any other reason, the group’s coverage will be cancelled.
Cancellation will also occur if a returned check places a group’s paid-to date status outside the 31-day grace period.
If a group pays less than the full premium due, partial payments will be credited. However, the premium will not be considered paid and will not be updated until the balance of the full premium amount is received. Should full payment not be received by the end of the 31-day grace period, cancellation of coverage will occur, and the group will be responsible for payment of grace period premiums.
When the full premium is not paid by the due date, any subsequent bills generated before processing of the cancellation of coverage will reflect premiums due for multiple periods — the current billing period plus unpaid premiums from the previous billing periods. Cancellation will occur as of the last day of the grace period even if additional billings have been generated.