Can A Health Insurance Company Cancel My Policy? 
Generally the answer will be `` No '' as long as you make your premium payments on time . In the era of health care reform the health insurance company is more restricted than ever before in how they both can issue and terminate policies with their customers . Essentially , you would have to be found guilty of fraud or misrepresentation in your application to reach the level where the insurance carrier could terminate a person for reasons other than non-payment of premium . Another , more benign situation , where a given insurance carrier may have to initiate policy termination is when the policyholder moves outside of the geographic area served by that carrier 's health plan . In this event the policyholder would have a change of life status event allowing them to enroll in another health insurance plan in their new location . 