After an employee selects a policy, the insurance carrier may require an initial premium payment before activating coverage. This payment is sometimes called a binder payment.
Completing an enrollment application does not, by itself, place the policy into effect.
Employees should follow the payment instructions and deadline provided during enrollment or directly by the carrier.
The initial payment process may be different from the process used for later monthly premiums.
The carrier controls the payment deadline and determines whether the policy becomes active. Employer administrators should direct employees to rely on the carrier for final coverage status and effective-date information.