When an individual owes premiums from a prior period of coverage and pays premiums
at or after the time reenrolls, such premiums will be credited to whichever period
specified. Where one fails to specify how the premiums should be applied, they are
credited to the new period of coverage. Any implied indication to the contrary should
be respected. For example, if an uninsured beneficiary returns any type of notice
of premium due from the past period of coverage (billing notice, letter, or termination
notice) along with a remittance, this can be interpreted as expressing intent to settle
existing premium indebtedness. The premiums should be credited accordingly.