PARRIS N. GLENDENING, Governor

Ch. 35

OF AN EMPLOYEE, MEMBER, OR SUBSCRIBER THAT ARE PROVIDED TO THE
COVERED EMPLOYEE, MEMBER, OR SUBSCRIBER, IF THE DEPENDENT SPOUSE
CEASES TO BE A QUALIFIED FAMILY MEMBER BECAUSE OF DIVORCE OR THE DEATH
OF THE EMPLOYEE, MEMBER, OR SUBSCRIBER.

(C) PHYSICAL EXAMINATION OR STATEMENT OF HEALTH PROHIBITED.

CONVERSION RIGHTS SHALL BE PROVIDED UNDER THIS SECTION WITHOUT A
PHYSICAL EXAMINATION OR STATEMENT OF HEALTH.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, §§ 354K and 477N.

In subsection (a)(1)(ii) and (2)(ii) of this section, the former references to
hospital, medical, or surgical "expense" benefits are deleted for consistency
with terminology used throughout this title.

In subsection (b) of this section, the term "divorce" is substituted for the
former reference to "termination of marriage" for clarity.

15-415. NOTICE TO EMPLOYER OF COVERAGE UNDER SUCCEEDING POLICY.

(A) DEFINITIONS.

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

(2) "GROUP CONTRACT" MEANS A HEALTH INSURANCE CONTRACT OR
POLICY THAT:

(I) IS ISSUED OR DELIVERED IN THE STATE TO AN EMPLOYER BY
AN INSURER OR NONPROFIT HEALTH SERVICE PLAN;

(II) PROVIDES HOSPITAL, MEDICAL, OR SURGICAL BENEFITS ON
AN EXPENSE-INCURRED BASIS; AND

(III) COVERS A GROUP OF 100 OR FEWER INDIVIDUALS.

(3) "SUCCEEDING POLICY" MEANS A GROUP CONTRACT THAT:

(I) REPLACES OR SUCCEEDS A GROUP CONTRACT; AND

(II) TAKES EFFECT WITHIN 65 DAYS AFTER THE DATE ON WHICH
THE REPLACED OR SUCCEEDED GROUP CONTRACT TERMINATES.

(4) "SUCCEEDING INSURER" MEANS THE INSURER OR NONPROFIT
HEALTH SERVICE PLAN THAT ISSUES A SUCCEEDING POLICY.

(B) IN GENERAL.

(1) BEFORE ENTERING INTO A GROUP CONTRACT, A SUCCEEDING
INSURER SHALL PROVIDE THE EMPLOYER WITH A WRITTEN STATEMENT THAT:

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