What could lead to the cancellation of a group life insurance policy?

The cancellation of a group life insurance policy often occurs due to non-payment of premiums. In most insurance agreements, timely payment of premiums is crucial for maintaining coverage. If premiums are not paid, especially for an extended period, such as two years, the insurer may have the right to cancel the policy since it indicates a failure to adhere to the contractual obligations outlined in the policy. This principle emphasizes the importance of keeping up with premium payments to ensure that coverage remains active.

Misstatement of salary could potentially lead to adjustments in coverage or premiums but typically does not directly result in cancellation unless it results in fraud or other significant issues. Claims filed after a specific period, such as two years, usually fall under statutes of limitations or contestability clauses but do not trigger policy cancellation. Changes in union contracts may affect the terms of the group policy but do not automatically lead to its cancellation; these changes would need to be negotiated and managed within the existing policy framework.