Ch. 242

1993 LAWS OF MARYLAND

(II) IS SUBJECT ONLY TO THE CONTINUED TIMELY PAYMENT OF A
PREMIUM.

(2) A GROUP POLICY THAT RESTRICTS BENEFITS AND SERVICES TO
CERTAIN PROVIDERS OR FACILITIES OR CONTAINS INCENTIVES TO USE CERTAIN
PROVIDERS OR FACILITIES MAY PROVIDE CONTINUATION BENEFITS THAT ARE
SUBSTANTIALLY EQUIVALENT TO THE BENEFITS OF THE EXISTING GROUP POLICY.

(C)     FOR PURPOSES OF THIS SECTION, A POLICY PROVIDES A BASIS FOR
CONVERSION OF COVERAGE IF THE POLICY PROVIDES FOR ISSUANCE OF A POLICY
PROVIDING BENEFITS IDENTICAL OR SUBSTANTIALLY EQUIVALENT TO OR IN
EXCESS OF THE BENEFITS OF THE POLICY BEING TERMINATED WITHOUT EVIDENCE
OF INSURABILITY TO EACH INDIVIDUAL:

            (1) WHOSE COVERAGE UNDER THE GROUP POLICY WOULD OTHERWISE

BE TERMINATED FOR ANY REASON; AND                               

(2) WHO HAS BEEN CONTINUOUSLY INSURED. UNDER THE POLICY FOR
AT LEAST 6 MONTHS BEFORE THE DATE OF TERMINATION.

(D)     IN DETERMINING WHETHER BENEFITS ARE SUBSTANTIALLY
EQUIVALENT UNDER THIS SECTION, THE COMMISSIONER SHALL CONSIDER THE
DIFFERENCE BETWEEN MANAGED CARE AND NONMANAGED CARE PLANS.

(E)     IF A GROUP LONG-TERM CARE INSURANCE POLICY IS REPLACED BY
ANOTHER LONG-TERM CARE POLICY PURCHASED BY THE SAME POLICYHOLDER,
THE SUCCEEDING INSURER SHALL OFFER COVERAGE TO ALL INSUREDS COVERED
UNDER THE OLD GROUP POLICY ON ITS DATE OF TERMINATION.

(F)     COVERAGE UNDER THE NEW GROUP POLICY MAY NOT RESULT IN AN
EXCLUSION FOR PREEXISTING CONDITIONS THAT WOULD HAVE BEEN COVERED
UNDER THE GROUP POLICY BEING REPLACED.                   

646.                                                                                                                                                                                                         

(a) (1) Any insured or certificate holder who is insured under a long-term care
insurance may surrender the policy or contract within 30 days of delivery for a return of
any premium paid BY PROVIDING WRITTEN NOTICE OF SURRENDER TO THE
INSURER.                                                                                                       

(2)      THE RIGHT OF SURRENDER MAY NOT BE WAIVED.

(3)      A CONTRACT TO PURCHASE LONG-TERM CARE INSURANCE SHALL
CONTAIN THE FOLLOWING STATEMENT:

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