When Does A Health Insurance Policy Become Effective?

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   Samuel Smith

   Enrolled Agent-licensed to practice before the IRS, Samuel N Smith, EA, South Carolina

   A health insurance policy can be issued with a temporary receipt for first months premium and unless the company refuses to accept the risk you were covered from the time you paid the first premium. It can also be issued where you sign a bankdraft and with the understanding the insurance company is going to draft your checking account each month the policy will become effective on the first of the month following completion of the application. In the case of Medicare Advantage the policy may have a zero premium and the agent simply sends in your application and the policy becomes effective on 1/1/2014.

   Answered on November 24, 2013

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