California Small Group

wildcat

Super Genius
100+ Post Club
214
No. Cal.
If a business cancels their small grp plan because of non-pay of premium, can the carrier continue to keep a policy in force because of ongoing claims? Then bill the company for back due premium. In this case 7 month.
 
My short answer is no.
Are claims still being paid on an employee after the cancellation??
If the employer group plan cancels, and, on the cx date, someone is totally disabled, that ind can apply for "extension of benefits". If that ind is approved for extension, the disabling condition will continue to be paid for by the carrier for up to 12 months. No premium is required.
 
Sorry my dear friend, You cant continue to keep a policy in force because of ongoing claims. In the critical condition the carrier will pay the premium upto max 12 month.
 
If I understand correctly, the group never sent in a formal cancellation letter, they just didn't pay the premiums? If that's the case, I've had a group get sent to collections for 3 months worth of premiums in a similiar circumstance.

The carrier sent a late premium notice for two months, then canned the group after providing three months of coverage without any premium. They still billed for the three months after the group was formally terminated and it eventually went into collections.

I could see a group getting retroactively billed for 1 to 3 months, but 7 would seem excessive.
 
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