Question

J owns a business and has a group life policy covering her employees. j decides to cancel the policy by letting it lapse on the renewal date. what action must be taken?

Answer 1

The answer is explained below.

Step-by-step explanation:

If J has a group of life policy covering her employees but decides to cancel it by letting it lapse on the renewal date, an insurer must notify each certificate holder (employee) when the master policy has expired or is being cancelled. The insurer may take such action through the policyholder (employer.)

Answer 2

All of the employees must be notified of the cancellation either by the insurance company or through J. An insurer must notify each certificate holder (employee) when the master policy has expired or is being cancelled. The insurer may take such action through the policyholder (employer).