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Revision to Premium Payment Process

News Release

This communiqué is applicable to group policies that are billed by Industrial Alliance.

A review of the premium payment process for group policies that are billed by Industrial Alliance’s Group Insurance division was recently completed.

As a result of the review, Industrial Alliance will introduce the following premium payment process, which reflects our contractual terms and improves our alignment with industry practices

  • If the entire premium for the Group Policy has not been received from the policyholder by the end of the grace period outlined in the Group Policy, the premium will be considered overdue. The grace period commences with the premium due date, which is the first of the month, and runs for 31 days. 
  • Upon the premium being considered overdue, a letter will be sent to the policyholder stating that the premium is overdue and if it is not received by the 45th day after the premium due date, payment of health and dental claims for all members under the Group Policy will be suspended. 
  • If the premium is not received by the 40th day after the premium due date, a call will be made to remind the policyholder that if the outstanding premium is not received by the 45th day, payment of health and dental claims for all members under the Group Policy will be suspended. 
  • If the premium is not received by the 45th day after the premium due date, a letter will be sent to the policyholder stating that members’ health and dental claims have been suspended. The claims will remain suspended until the outstanding premium for all divisions under the Group Policy is received by Industrial Alliance. 
  • If the premium is not received by the 60th day after the premium due date, the entire Group Policy will be terminated retroactive to the end of the grace period identified in the Group Policy.

The revised premium payment process will be introduced with your October bill. To ensure that your premiums are received on time and to prevent any possibility of your members’ health and dental claims being suspended, the option of pre-authorized withdrawal for payment of premiums is available.

If you have any questions regarding the revised premium payment process or if you wish to take advantage of pre-authorized withdrawals for payment of your premiums, please contact your benefits advisor or your Industrial Alliance group account executive.