When is an insurance premium owed?

I changed health insurance companies and didn’t pay the next due premium to my old one – thinking that would cancel the coverage. I also sent a follow-up email albeit two week later, stating that I was cancelling their insurance, effective the last payment. Do I still owe for that last premium? They have sent me to collections.

Asked on September 26, 2013 under Bankruptcy Law, Colorado


Terence Fenelon / Law Offices of Terence Fenelon

Answered 7 years ago | Contributor

A contract is valid until it is rescinded (cancelled).  The failure to pay premiums on your part is not a cancellation of your obligation.  I am afraid that you still owe thre premiums, just as the insurance company would have had an obligation of coverage until written notice of cancellation was sent.

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