In accordance with the Affordable Care Act, insurance companies can no longer cancel your health insurance out of the blue or for frivolous reasons. Your policy can only be canceled for certain well-defined reasons, and even then you must be told of the cancellation in advance.

Legitimate Cancellation Reasons and Notice

Health insurance companies are permitted to cancel your insurance policy, but they can only do so for limited reasons. Your policy may be canceled if you intentionally included false or incomplete information on your application, or if you fail to make timely premium payments. If your insurance company decides to cancel your policy, it must provide you with 30 days' advance notice before doing so. This gives you an opportunity to find new coverage or appeal the carrier's decision.