Can I be forced to pay for group health insurance premium just because I did not send in a cancellation notice?
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Can I be forced to pay for group health insurance premium just because I did not send in a cancellation notice?
We are a 2 person company and were unaware a cancellation notice had to be sent; we thought if we could not pay the bill we would simply be cancelled. Now the insurer has sent us to a collection agency for the full month’s premium.
Asked on February 7, 2012 under Bankruptcy Law, California
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Not paying a premium is only a legal way to cancel if the agreement with the insurer specifically states that nonpayment results in cancellation. You should double check your agreement with the insurer, but I doubt this is the case; typically, non-payment is simply a breach or violation of the agreement, which would let the insurer take collections or legal action against you. Usually, you can only cancel by sending in the appropriate notice and/or at certain times; again though, to be sure, you need to check the agreement. Whatever it says is enforceable.
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