Ill. Admin. Code tit. 50, § 2013.40 - Effective Date of Discontinuance for Non-Payment of Premium
a) If a group contract subject to this Part
provides for automatic discontinuance of the contract after a premium has
remained unpaid through the grace period allowed for such payment, the carrier
shall be liable for valid claims for covered losses incurred prior to the end
of the grace period. The carrier shall, however, be entitled to the premium due
for coverage provided during the grace period.
b) If the actions of the carrier after the
end of the grace period indicate that it considers the group contract as
continuing in force beyond the end of the grace period by continuing to
recognize claims subsequently incurred, the carrier shall be liable for valid
claims for losses beginning prior to the effective date of written notice of
discontinuance to the contract holders or other entity responsible for making
payments to the carrier. The effective date of discontinuance shall not be
prior to midnight at the end of the third scheduled work day after the date
upon which the notice is delivered.
Notes
Amended at 18 Ill. Reg. 16921, effective November 15, 1994
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