Legal Question in Business Law in California

Re: Employer still carrying insurance on me after I quit

Can the employer still cover you? My guess is that somewhere in the contract between the employer and the insurance company there will be a clause that says the coverage is for employees only, and that new employees should be added at such-and-such time and that ex-employees must be reported and removed within such-and-such a time frame. So, my guess is that the employer is violating its contract with the insurance company by failing to delete you from its coverage. Is this illegal? Probably not. Does the insurance company care about the employer thus violating the contract? Probably not, at least not much.

The information given you by the accountant doesn't sound right.......makes no sense. Was there any explanation offered? Maybe 100% coverage was required for some group policy, but that does not explain keeping someone enrolled who is no longer part of the group. Maybe if the company was very small, it needed everyone in order to meet a minimum group size requirement.

My guess is that the former employer is poorly managed and that its HR department has forgotten, or procrastinated, to update its employee info with the insurer. I can't think of any really good reason why it would continue coverage for an ex-employee voluntarily, especially since it costs them money for everyone covered.