Monday, July 28, 2008

Insurance Tips #1: Merging Companies

If Company A is buying Company B in the middle of a month, Company B's following month's medical coverage will need to be terminated by Company B's broker/or Company B itself. Company A's broker can try to, but it's looking like insurance carriers use that as an excuse to disregard the termination notice and charge an extra month.

Can they do this and is it legal? Yes and yes.

Legally, only Company B and its representative, the broker, can make changes to their policy. Therefore, any notice by Company A and their broker can "legally" be disregarded by insurance carriers. Does it make sense common sense-wise? Hell no, but these ARE insurance companies we're talking about. Anything to maximize the profits, no?



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