Gapless Renewal

Stop loss policies operate on defined contract bases (e.g., 12/12, 12/15, 12/18), which require claims to meet both an incurred period and a paid period.
 

When one policy ends and the next begins, certain claims can fall outside both contracts due to timing technicalities.

Example under a strict 12/12:

• Claim incurred in December and paid in January
• If not structured properly, it may not qualify under either year’s contract

A Gapless Renewal endorsement prevents this issue when staying with the same carrier.

When an employer renews with the same stop loss carrier, the endorsement:

• Seamlessly bridges the paid and incurred periods of consecutive policy years
• Allows claims that span the policy boundary to be eligible
• Treats the renewal as a continuous coverage period for timing purposes

It eliminates artificial claim denials caused by calendar cutoffs.