Under what circumstance can health insurance be canceled?

Health insurance can be canceled due to non-payment of premiums because insurance contracts are contingent upon the timely payment of premiums. When an insured fails to pay the required premiums, the insurance company may consider the policy in default and may terminate the coverage. This is a common practice across various types of insurance and is usually outlined in the terms and conditions of the policy.

Changes in employment status can affect coverage options or eligibility for certain types of plans, but they do not directly result in cancellation of an ongoing health insurance policy. Reaching the out-of-pocket maximum signifies that the insured has met their financial responsibility under the plan and usually leads to the cessation of cost-sharing for the remainder of the plan year, rather than cancellation of coverage. Requesting a plan change may modify the terms or the type of coverage but does not inherently cancel the insurance policy itself.