California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 2 - Policy Forms and Other Documents › Article 2a - Group Disability Policies › Subarticle 3 - Optional Uniform Provisions › Section 2232.38 - Cancellation

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The insurer may cancel this policy at any time by written
						notice delivered to the employer, or mailed to the employer's last address as
						shown on the records of the insurer, stating when, not less than 31 days
						thereafter, such cancellation shall be effective; and after the policy has been
						continued beyond its original term the employer may cancel this policy at any
						time by written notice delivered or mailed to the insurer, effective on receipt
						or on such later date as may be specified in the notice. In the event of such
						cancellation by either the insurer or the employer, the insurer shall promptly
						return on a prorata basis the unearned premium paid, if any, and the employer
						shall promptly pay on prorata basis the earned premium which has not been paid.
						(In computing the prorata premium to be returned by the insurer or to be paid
						by the insurer or to be paid by the employer, any discounts in premium or
						premium rate actually allowed to the employer because of the longer periods for
						which premiums, at the time of the cancellation, had been paid or agreed to be
						paid shall be disregarded, and the prorata return or payment of premium will be
						computed upon the basis of the insurer's regular and customary premium or
						premium rate for the coverage of this policy.) Such cancellation shall be
						without prejudice to any claim originating prior to the effective date of such
						cancellation.
Instructions
1. The insurer may, at its option, omit the
					 phrase "after the policy has been continued beyond its original term" after the
					 "and" following the first semicolon.
2. Any provision of the policy by which the
					 insurer is given the right to terminate coverage or increase premiums affects
					 rights under the policy substantially similar to cancellation, and any such
					 provision which results in the insurer having the right to terminate coverage
					 or increase premium on less than 31 days written notice delivered or mailed to
					 the employer at the employer's last address as it appears on the records of the
					 insurer is less favorable than this uniform provision and is a violation of
					 Section 2232.6 of this article. However,
					 termination of the entire policy or increase of premium negotiated by the
					 mutual agreement, express or implied, of the parties terminates the entire
					 contract including the "Cancellation" uniform provision, or modifies a
					 provision of the policy without reference to cancellation or threat thereof.
					 Such results may in fact be so accomplished notwithstanding the provisions of
					 the policy relating to cancellation by the unilateral acts of the insurer or
					 the employer. A policy provision relating to termination at a premium due date
					 by mutual consent, irrespective of notice, or whereby the insurer gives advance
					 consent to such a termination by the employer is not inconsistent with this
					 uniform provision. (Ins. C. 10369.9.)
3. The insurer may, at its option, include or
					 omit the next to the last sentence enclosed in parentheses.
1. Change
						without regulatory effect amending section filed 7-14-2021 pursuant to section
						100, title 1, California Code of
						Regulations (Register 2021, No. 29). Filing deadline specified in Government
						Code section
						11349.3(a)
						extended 60 calendar days pursuant to Executive Order
						N-40-20.