Cancellation for Nonpayment of Premiums. If a billed Premium payment is not received on or before the last day of the month prior to the month of coverage, a “Notice of Start of Grace Period” will be sent via USPS to GROUP by SHOP on behalf of HEALTH PLAN on the first day of that month, identifying the date the 30 day grace period begins and ends, the effective date of cancellation if payment is not received by the end of the grace period, dollar amount past due, and the employer’s right to appeal. GROUP shall promptly send such Notice to each subscriber receiving coverage under the GROUP’s policy. The Notice will provide instructions on how to submit the past due premium payment to maintain coverage and will reiterate when such cancellation will be effective. The notice will also state how and when the GROUP may appeal the cancellation. If the Premium payment is not received by the cancellation effective date, the Agreement will be terminated for non-payment effective 30 days from the date the Notice of Start of Grace Period was sent. In such a case, a “Notice of End of Coverage” will be mailed to GROUP by SHOP on behalf of HEALTH PLAN within 3 days if an electronic notice is sent or 5 business days if a mailed hard copy is sent. HEALTH PLAN, or SHOP on behalf of HEALTH PLAN, will mail an individual Notice of End of Coverage to each of its affected Members, explaining their options for purchasing individual coverage. All of the notices described above will include statements regarding the reason for the cancellation, the amount of premiums due, a statement of the 30-day grace period, the effective date of the cancellation, and the right of GROUP to seek review by the appropriate regulator, either the California Department of Managed Health Care or the California Department of Insurance (including the responsibility of GROUP to pay premiums during any such review and the right of GROUP to be reinstated back to the effective date of termination if it prevails in such review). Receipt by SHOP of all Premium payments due and owing by the due date indicated in the Notice of Start of Grace Period will continue the Agreement, as modified by this Supplement, with no interruption in coverage. If full payment of all delinquent Premiums is not received by SHOP by the due date indicated in the Notice of Start of Grace Period, the Agreement will be terminated. GROUP may request to be reinstated in the same coverage in which it was last enrolled within 30 days after the effective date of the termination. Past...
