My employer deducting insurance premium from my salary every month for more than 2 years.when i got involved in a hit and run accident last sept.2009,we found out that our policy(employer) was already cancelled more than a year before i have the accident,i was told by my employer to pay first my medical expences and give them the receipt for reimbursement.after reimbursing few receipt amounting to 6k,they told me that they are not going to pay the rest of my bills because the company was already been sold.and they are under new management.now the hospital is trying to collect the amount i owed.but i dont have a job yet to pay for that bill.and now a collection agency started to call me every day.pls.help
Let's touch on some of the issues you raise.
Yes, you can sue the company (new owner doen't matter) for taking insurance premiums and not providing insurance. This is also a federal violation with huge penalties, but it is not easy to get the US Dept. of Labor to look at your case.
Depending on the situation the insurance company should have told you the policy was cancelled. By continuing to collect premium for a policy that didn't exist, you may have an action under the California Insurance Commissioner. Call them, it's free.
Were you doing anything for your employer when the accident occurred?
While the medical providers have a right to go after you for payment, you have several potential actions against your former employer and it likely doesn't matter that he sold the company.