Termination of Group Insurance
back to manual home | next section
Termination for Non-Payment of Dues
All premium payments are due and payable in advance; any premium for this insurance
that is not paid on or before the date it becomes due is in default. After the first
premium payment, the group may be allowed a 30-day grace period. During the grace
period, there is no interest charge. Although the insurance shall remain in force
during the grace period, Arkansas Blue Cross shall have the right to delay the processing
of claims for services received by employees or dependents during the grace period,
pending the payment of the premium due.
If your group health insurance is terminated for non-payment of premium, your company
will be liable to Arkansas Blue Cross for the following:
- Payment of all premiums which are due or unpaid at the time of termination, or
- Reimbursement of all claims incurred and paid during the grace period, whichever
In addition, if coverage does terminate, you will be responsible for providing notification
of termination to all covered employees.
Arkansas Blue Cross does not assume your responsibility to giving timely
notice of termination, or of COBRA rights or other options available to any group
member (employee) whose coverage ends due to non-payment of premium.
What Constitutes Payment
Please note that it is not sufficient, for purposes of meeting premium payment
obligations under your group contract, to simply put a check in the mail. In order
to constitute payment and prevent the automatic termination of all coverage upon
expiration of the grace period, the full amount due must actually be received by
Arkansas Blue Cross at its principal office, Sixth and Gaines Street, Little Rock,
Arkansas, on or before the expiration of the grace period. If the check is dishonored
or if, for any other reason, Arkansas Blue Cross does not receive final, valid payment
in full of all amounts due, automatic termination at the end of the grace period
will occur as if the dishonored check or other invalid payment had never been received.
Approximately 20 days after the premium due date, a delinquency letter will be sent
to the group.
If payment has not been received by the end of the group's grace period and coverage
has been terminated according to Arkansas Blue Cross’ records, a termination letter
will be sent confirming the group's automatic termination at the end of the grace
period for non-payment of premium.
NOTE: No notice is required to terminate your group contract for non-payment
of premium. Termination (and all insurance coverage under your Arkansas Blue Cross
contract) occurs automatically without notice when the full premium amount
is not actually received in the form of a valid, final payment at our principal
corporate office at Sixth and Gaines Street, Little Rock, Arkansas. However, as
a courtesy to you to try to avoid an inadvertent termination and minimize the costly
disruption of service and reinstatement charges (if reinstatement is allowed), we
generally use the Reinstatement Procedures to inform you of the status of your premium
In the event your group contract terminates for non-payment of premium, your group
coverage may be eligible for reinstatement in the sole discretion of Arkansas
Blue Cross, provided certain conditions are met to the satisfaction of Arkansas
Blue Cross. The following is required for reinstatement to be considered:
- Payment for all premiums due by cashier's check.
- Payment, by cashier's check, of a non-refundable reinstatement application fee in
the amount of $350 (or such other amount as may be determined by Arkansas Blue Cross)
to cover reinstatement processing, and
- Completion and return of a signed group application for reinstatement.
The above requirements must be met within 15 days of the date of the "confirmation
of termination" letter. Your request will then be forwarded to a designated underwriter
for review. Following review (which we will attempt to complete on most applications
within 3-5 business days), your group will be notified of our decision regarding
the reinstatement request.
All efforts will be made by Arkansas Blue Cross to collect either past due premium,
or reimbursement for all claims incurred and paid during the grace period, whichever
is greater. If payment is not made, delinquent accounts may be referred to a collection
Termination of Insurance per Group Request
The group may elect to terminate the group's insurance policy with Arkansas Blue
Cross on any advance premium due date. If your group wants to terminate your group
insurance on any premium due date, you must give Arkansas Blue Cross written notice
of termination in advance of the premium due date; please either email notices
or fax notices to 501-378-3248.
If written notice of termination is not received in advance of the group's premium
due date, the group will be liable to Arkansas Blue Cross for payment of all premiums
which are due but unpaid or for reimbursement to Arkansas Blue Cross for all claims
incurred and paid during the grace period, whichever is the greater amount.
Standard Ineligibility Period After Termination
A group that terminates for any reason will not be considered for reinstatement
or new contract coverage for a period of six months.
If this policy terminates because the policyholder has failed to pay the premium,
the policyholder shall not be eligible to reapply for another policy with the company
for a period of six months from the date this policy terminated. If the policyholder
wishes to reapply, and still owes premium or claims from a previous cancellation,
no reapplication will be considered until the policyholder pays, via cashier's check,
either all premiums which were due but unpaid at the time of termination, or reimbursement
to the company for all claims incurred and paid during the grace period, whichever
is the greater amount; and a $500 fee (or such other amount as Arkansas Blue Cross
may require) to cover the various costs resulting from the termination and reinstatement.
Arkansas Blue Cross reserves the right to refuse to issue a policy or consider coverage
for any group that has previously been terminated for non-payment of premium and
failed to pay all amounts due to Arkansas Blue Cross within 60 days of such termination.