{"data":{"id":"us-ky/krs-304.17a-245","jurisdiction":"us-ky","citation":"KRS 304.17A-245","heading":"Required notice of cancellation -- Procedure -- Refund of unearned","body":"premium.\n(1) Except as provided in subsection (2) of this section, an insurer delivering or issuing\na health benefit plan subject to this subtitle shall give the policyholder or co ntract\nholder at least thirty (30) days' advance written notice of cancellation. The notice\nshall be mailed by regular United States first class mail to the policyholder's or\ncontract holder's last address as shown by the records of the insurer. If premium  has\nbeen paid, the insurer shall pay all claims through the conclusion of the thirty (30)\nday notice period, except for as provided in KRS 304.14-110.\n(2) If cancellation is for nonpayment of premium, the insurer shall give the policyholder\nor contract ho lder at least thirty (30) days' written notice of cancellation. The\ncancellation shall be mailed by regular United States first class mail. If premium is\nnot paid at the conclusion of the thirty (30) day grace period, the policy\nautomatically terminates to  the last date through which premium was paid. The\ninsurer shall clearly state, in the thirty (30) day notice of termination, that if\npremium is not received by the end of the thirty (30) day grace period, the policy\nautomatically terminates to the last date through which premium was paid.\n(3) If the group policy has been canceled, the insurer shall notify each group member of\nhis right to conversion pursuant to KRS 304.18 -110 within fifteen (15) business\ndays after the end of the grace period. On and after  January 1, 2001, every insurer\noffering group health insurance coverage in the Commonwealth shall include in its\ncontract with group policyholders or contract holders, regardless of the situs of the\ncontract, a provision requiring the group policyholder o r contract holder to mail\npromptly to each person covered under the group policy or contract a legible, true\ncopy of any notice of cancellation of the group coverage which may be received\nfrom the insurer and to provide promptly to the insurer proof of that mailing and the\ndate thereof. The notice of cancellation mailed by the group policyholder or contract\nholder to each person covered under the group policy or contract shall include\ninformation regarding the conversion rights of covered persons upon termi nation of\nthe group policy or contract. This information shall be in clear and easily\nunderstandable language.\n(4) All group contracts shall include an automatic termination provision if premium\namounts are not received by the end of the grace period.\n(5) In the event of cancellation, the insurer shall return promptly the unearned portion\nof any premium paid. Cancellation shall be without prejudice to any claim\noriginating prior to the effective date of cancellation.\n(6) If the insurer fails to provide the thirty (30) days' notice required by this section, the\ncoverage shall remain in effect at the existing premium until thirty (30) days after\nthe notice is given or until the effective date of replacement coverage obtained by\nthe insured, whichever occurs first.\n(7) In the case of nonpayment of premium, all group contracts shall include an insurer's\nreinstatement policy for a contract holder or policyholder. An insurer shall not deny\na contract holder or policyholder reinstatement based on any health -related factor\nlisted in KRS 304.17A-200 or consideration of medical loss ratio.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=17399","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:46Z","sha256":"63681cedaaf1d86864edd9bdc31be765a97279d54f755b397f68f2bd673849e8","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.17a-243","next":"us-ky/krs-304.17a-250"},"notice":"GroundRules: Original legal text. Not legal advice."}