There is a new law regarding premium payments (CA AB 2470) which directly affects your coverage. Simply put, this bill states that premiums are due on the first of the month of coverage and if payment is not received by the end of the 30-day grace period, coverage will be terminated. Such termination will be effective at the conclusion of the required 30-day grace period and you will be responsible for payment of any unpaid premiums for this coverage period.
Now more than ever, it is crucial that you pay your monthly premium on time. With this new law, not making timely payments may result in cancellation of your group policy. While reinstatement is usually possible, most insurance carriers will only allow a maximum of two reinstatements per calendar year.
If your group policy is terminated for non-payment more than twice, you must complete a new group application and will be subject to the underwriting process.
Read more about what the law states.