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2035
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HARRY HUGHES, Governor
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TIMELY WRITTEN REQUEST AND TIMELY PAYMENT OF THE REQUIRED
PREMIUM.
(C) THE INDIVIDUAL POLICY SHALL BE GUARANTEED RENEWABLE FOR
THE TERM OR TO THE LIMITING AGE FOR WHICH BENEFITS WOULD HAVE
BEEN PROVIDED HAD COVERAGE UNDER THE GROUP POLICY NOT TERMINATED.
THE LEVEL OF BENEFITS UNDER THE INDIVIDUAL POLICY SHALL BE
APPROXIMATELY EQUAL TO THE DISABILITY BENEFITS WHICH WOULD HAVE
BEEN AFFORDED UNDER THE TERMINATED GROUP COVERAGE.
(D) THE PREMIUM FOR THE INDIVIDUAL POLICY SHALL BE
DETERMINED IN ACCORDANCE WITH THE INSURER'S TABLE OF PREMIUM
RATES APPLICABLE TO THE ATTAINED AGE AND THE CLASS OF RISK OF THE
COVERED PERSON FOR THE TYPE AND AMOUNT OF COVERAGE PROVIDED UNDER
THE CONVERTED POLICY. THE INSURER SHALL RESERVE THE RIGHT TO
CHANGE THE PREMIUMS ON ANY POLICY ANNIVERSARY SUBJECT TO APPROVAL
BY THE COMMISSIONER.
(E) THE COMMISSIONER MAY ESTABLISH REQUIREMENTS AS TO
NOTIFICATION BY THE INSURER OR THE GROUP POLICYHOLDER TO THE
PERSON WHOSE COVERAGE IS BEING TERMINATED AS TO THE RIGHT OF
CONVERSION TO AN INDIVIDUAL POLICY.
(F) THE COMMISSIONER MAY BY REGULATION EXEMPT CERTAIN TYPES
OF GROUP POLICIES FROM THE REQUIREMENTS OF THIS SECTION WHERE IN
HIS DISCRETION HE DEEMS THE EXEMPTION APPROPRIATE. EXCEPT AS THE
COMMISSIONER PROVIDES BY REGULATION, THIS SECTION MAY NOT APPLY
TO ANY GROUP POLICY ISSUED TO AN EMPLOYER TO COVER ITS EMPLOYEES.
(G) THE INSURER MAY LIMIT THE RIGHT OF CONVERSION TO
PERSONS WHO HAVE BEEN COVERED UNDER THE GROUP POLICY FOR AT LEAST
A YEAR.
(H) EVERY GROUP HEALTH INSURANCE POLICY ISSUED PRIOR TO THE
EFFECTIVE DATE OF THIS SECTION SHALL BE AMENDED TO COMPLY WITH
THE REQUIREMENTS OF THIS SECTION ON THE FIRST POLICY RENEWAL
ANNIVERSARY DATE COINCIDING WITH OR FOLLOWING THE EFFECTIVE DATE
OF THIS SECTION.
(I) NOTHING IN THIS SECTION SHALL APPLY TO A POLICY ISSUED
IN ACCORDANCE WITH THE PROVISIONS OF SUBTITLE 24A OF THIS ARTICLE
IF THE INSURANCE UNDER THE POLICY IS TERMINATED AS A RESULT OF
THE PREPAYMENT OR THE REFINANCING WITH THE SAME CREDITOR IN WHOLE
OR IN PART OF A PRIOR DEBT.
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SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect January 1, 1984.
Approved May 31, 1983.
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