Cancelled policy

[WMSG]

Might depend on the carrier. I know of one carrier who eliminated that loophole a few years back when they discovered that an employee had not paid premium for 2 years. I DO NOT recommend what I stated. If a paper check is presented to the carrier it has to pass through the banking institution and get rejected before the carrier would know if it was good or not. The policy would be credited with the receipt of premium and a notice would arrive 5-10 days later if the bank did not honor the check (some might and cover it with an overdraft fee). Depending on how he carrier covers bounced checks would determine if and when the policy is still in force, cancelled, or terminated. This won't work for most EFT's or debit transactions. Knowing that there isn't enough to cover the premium is FRAUD. But it can kick the can down the road sometimes

I think the carrier would go back to the date the premium was paid -- status would be NSF, thus the premium was not paid -- and the coverage would be lapsed/terminated back to lapse/termination date. JMO.

Remember folks, the insurance policy/coverage is a contract. One of an insurance company's first claims and defense in litigation is an estoppel. Thanks again for the insight.