Common use of Non-Sufficient Funds Clause in Contracts

Non-Sufficient Funds. If a qualified employer makes a premium payment that is returned unpaid for any reason, the SHOP shall apply a $25.00 insufficient funds fee. If a qualified employer makes a second premium payment that is returned unpaid for any reason within six months of the prior returned payment, the qualified employer shall submit premium payment and the insufficient funds fee for returned payment in the form of a cashier’s check or money order. This requirement to make monthly premium payments in the form of a cashier’s check or money order shall continue for a period of 12 months beginning with the first of the month following the last paid through date. If premium payment is not submitted in one of these two forms, the qualified employer group may be subject to termination for nonpayment of premium as described in 10 CCR § 6538 (c)(2). In no event shall the failure to pay the insufficient funds fee be a basis to terminate, non-renew or cancel coverage pursuant to Health and Safety Code Section 1365 or Insurance Code Section 10273.4, as applicable.

Non-Sufficient Funds. If a qualified employer makes a premium payment that is returned unpaid for any reason, the SHOP shall apply a $25.00 insufficient funds fee. If a qualified employer makes a second premium payment that is returned unpaid for any reason within six months of the prior returned payment, the qualified employer shall submit premium payment and the insufficient funds fee for returned payment in the form of a cashier’s check or money order. This requirement to make monthly premium payments in the form of a cashier’s check or money order shall continue for a period of 12 months beginning with the first of the month following the last paid paid-through date. If premium payment is not submitted in one of these two forms, the qualified employer group may be subject to termination for nonpayment non-payment of premium as described in 10 CCR § 6538 (c)(2). In no event shall the failure to pay the insufficient funds fee be a basis to terminate, non-renew or cancel coverage pursuant to Health and Safety Code Section 1365 or Insurance Code Section 10273.410753.13, as applicable.

Non-Sufficient Funds. If a qualified employer makes a premium payment that is returned unpaid for any reason, the SHOP shall apply a $25.00 insufficient funds fee. If a qualified employer makes a second premium payment that is returned unpaid for any reason within six months of the prior returned payment, the qualified employer shall submit premium payment and the insufficient funds fee for returned payment in the form of a cashier’s check or money order. This requirement to make monthly premium payments in the form of a cashier’s check or money order shall continue for a period of 12 months beginning with the first of the month following the last paid paid-through date. If premium payment is not submitted in one of these two forms, the qualified employer group may be subject to termination for nonpayment non-payment of premium as described in 10 CCR § 6538 (c)(2). In no event shall the failure to pay the insufficient funds fee be a basis to terminate, non-renew or cancel coverage pursuant to Health and Safety Code Section 1365 or Insurance Code Section 10273.4Section10273.4, as applicable.