Which of the following is a reason for the cancellation of group coverage?

Prepare for the Connecticut Insurance Laws and Rules Exam. Explore flashcards and detailed multiple-choice questions, each supplemented with helpful hints and explanations. Ace your exam with confidence!

Cancellation of group coverage often occurs when an employee fails to contribute to the premium. Group insurance plans typically require contributions from employees to maintain coverage. If an employee does not make the necessary premium contributions, the insurance provider may have grounds to cancel that individual's coverage, as maintaining financial responsibility in a group plan is fundamental for the sustainability of the coverage for all members involved.

In contrast, going on leave, such as medical or family leave, generally does not lead to cancellation of coverage; policies often maintain coverage during the absence to protect the employee. A company expanding does not directly affect individual employee coverage in a way that would lead to cancellations, as expansions may not correlate with an individual's eligibility. Receiving a promotion typically also doesn't influence coverage; in many cases, promotions may lead to enhancements in benefits rather than cancellation.

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