premium refund on cancelled policy

[shirley&tony]

What is the name of your state?What is the name of your state?What is the name of your state?undefinedNJ

My husband, who is retired from the teamsters union, continued to maintain health insurance through the union. The premiums were paid by deduction from his monthly pension check. Because the insurance became too costly, he called to cancel at the end of July. The union sent him the form to sign for cancellation which he returned and was received by them on August 3, 2005. He assumed that they would return monies due to him as of the date of cancellation. However, the union has now informed him that they cannot cancel the insurance until August 31 as they do not pro rate.

Is this allowed? I have cancelled policies in the past and was always refunded my money as of the date of cancellation. Keeping the policy in force for the additional month of August will cost us $1050.00. This is alot of money to us. We are on a fixed income.

[cbg]

Many insurance policies, including a great many employment sponsored policies, will only cancel on the last day of the month. If that is the case it's perfectly legal.

It's not that you are paying for the insurance beyond the date of cancellation; the insurance will still be in force until the end of the month.