Opinion ID: 2123847
Heading Depth: 1
Heading Rank: 4

Heading: Contractual Allocation of Liability to the Enrollees.

Text: As a final matter, we must consider the argument of the agency and the intervenor-HMO that the group contract provides that, if the applicable premium is not paid for a period exceeding thirty days, the individual subscribers and members shall be liable for payment of any services received during the thirty-day period. The answer to any claim of the HMO under that contract clause is that statutory requirements for termination of benefits necessarily override conflicting contractual clauses. Freeman v. Bonnes Trucking, Inc., 337 N.W.2d 871, 877 (Iowa 1983) (the case of financially unstable employer with employees going forward with their work in belief they have medical insurance provides graphic illustration of wisdom of requiring notice of cancellation); Artificial Ice Co., 192 Iowa at 1140, 184 N.W. at 759. We have considered all issues presented and hold that the contractual rights of the individual enrollees to benefits under the group contract were not terminated in the manner required by law. [1] Consequently, we reverse the judgment of the district court and the final order of the agency that determined that such rights had been terminated. REVERSED.