If an employee pays insurance premiums in the month and then terminates employment, is the employer required to carry the insurance through the end of that month?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

If an employee pays insurance premiums in the month and then terminates employment, is the employer required to carry the insurance through the end of that month?

Or is it legal to cancel insurance on the last day of employment?

Asked on August 29, 2013 under Employment Labor Law, Montana

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

1) Premiums are generally pre-paid, so they would cover that whole month.

2) More  importantly, the coverage cannot be cancelled immediately, because that would violate COBRA--the federal statute allowing an employee to continue his/her coverage by taking over payment of the full premium. Both employers and employees should look under COBRA at the U.S. Department of Labor's website for more information on what happens to insurance coverage at termination of employment.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption