HARRY HUGHES, Governor

3791

CONTINUATION [Continuation] of group coverage at the expense of
the insured person may be required for a period not to exceed 6
months.

354FF.

EVERY INSURANCE CONTRACT OR POLICY ISSUED OR DELIVERED IN
THIS STATE TO AN EMPLOYER BY A NONPROFIT HEALTH SERVICE PLAN
WHICH PROVIDES GROUP HOSPITAL, MEDICAL, OR SURGICAL BENEFITS ON
AN EXPENSE INCURRED BASIS SHALL PROVIDE CONTINUATION COVERAGE
REQUIRED UNDER § 490G OF THIS ARTICLE.

477GG.

EVERY CONTRACT OR POLICY ISSUED OR DELIVERED IN THIS STATE
TO AN EMPLOYER BY AN INSURANCE COMPANY WHICH PROVIDES GROUP
HOSPITAL, MEDICAL, OR SURGICAL BENEFITS ON AN EXPENSE INCURRED
BASIS SHALL PROVIDE CONTINUATION COVERAGE REQUIRED UNDER § 490G
OF THIS ARTICLE.

490G.

(A)  (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE
MEANINGS INDICATED.

(2)  "APPLICABLE CHANGE IN STATUS" MEANS THE
INVOLUNTARY TERMINATION OF THE INSURED'S EMPLOYMENT OTHER THAN
FOR CAUSE.

(3)  "GROUP CONTRACT" MEANS:

(I)  ANY CONTRACT OR POLICY ISSUED OR DELIVERED
IN THIS STATE TO THE EMPLOYER OF THE INSURED BY A NONPROFIT
HEALTH SERVICE INSURANCE PLAN OR AN INSURANCE COMPANY WHICH
PROVIDES GROUP HOSPITAL, MEDICAL, OR SURGICAL BENEFITS TO THE
EMPLOYEES OF THE EMPLOYER ON AN EXPENSE INCURRED BASIS; OR

(II)  ANY CONTRACT BETWEEN THE EMPLOYER OF THE
INSURED AND A HEALTH MAINTENANCE ORGANIZATION CERTIFIED UNDER
TITLE 19, SUBTITLE 7 OF THE HEALTH - GENERAL ARTICLE WHICH
PROVIDES GROUP HOSPITAL, MEDICAL, OR SURGICAL BENEFITS OFFERED TO
THE INSURED EMPLOYEES OF THE EMPLOYER.

(4)  "INSURED" MEANS AN EMPLOYEE WHO IS A RESIDENT OF
THIS STATE AND COVERED UNDER A GROUP CONTRACT FOR A PERIOD OF NOT
LESS THAN 3 MONTHS.

(B)  EVERY GROUP CONTRACT SHALL PROVIDE CONTINUATION
BENEFITS MEETING THE REQUIREMENTS OF THIS SECTION.

(C)  SUBJECT TO SUBSECTION (D) OF THIS SECTION, THE GROUP
CONTRACT SHALL PROVIDE CONTINUATION BENEFITS TO AN INSURED AFTER
AN APPLICABLE CHANGE IN STATUS.

(D)  ANY CONTINUATION COVERAGE WHICH IS ELECTED BY OR ON
BEHALF OF THE INSURED UNDER THE GROUP CONTRACT SHALL BE FOR A