Ch. 35

1997 LAWS OF MARYLAND

(I) DESCRIBES ANY WAITING PERIODS FOR PREEXISTING
CONDITIONS, EXCLUSIONS, OR SIMILAR POLICY PROVISIONS IN THE SUCCEEDING
POLICY THAT LIMIT OR EXCLUDE COVERAGE; AND

(II) IDENTIFIES EACH INDIVIDUAL WHO IS COVERED UNDER THE
REPLACED OR SUCCEEDED GROUP CONTRACT BUT WHO IS INELIGIBLE FOR FULL
COVERAGE UNDER THE SUCCEEDING POLICY.

(2) THE STATEMENT REQUIRED UNDER PARAGRAPH (1) OF THIS
SUBSECTION MUST BE SUFFICIENTLY CLEAR AND SPECIFIC SO THAT AN INDIVIDUAL
OF AVERAGE INTELLIGENCE CAN UNDERSTAND THE STATEMENT WITHOUT
MAKING FURTHER INQUIRY TO THE SUCCEEDING INSURER.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 490N.

In subsection (b)(2) of this section, the reference to an "individual" of average
intelligence is substituted for the former reference to a "person" because
individuals have intelligence.

Defined terms: "Health insurance" § 1-101
"Insurer" § 1-101
"Policy" § 1-101

SUBTITLE 5. PROHIBITED DENIALS, EXCLUSIONS, AND REDUCTIONS OF COVERAGE.
15-501. INCREASED SOCIAL SECURITY PAYMENTS.

AN INDIVIDUAL, GROUP, OR BLANKET HEALTH INSURANCE CONTRACT MAY
NOT CONTAIN A PROVISION THAT REDUCES PAYMENTS TO AN INDIVIDUAL
ENTITLED TO RECEIVE DISABILITY PAYMENTS UNDER THE CONTRACT BECAUSE
THE INDIVIDUAL RECEIVES AN INCREASE IN SOCIAL SECURITY PAYMENTS.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, §§ 470F and 477G.

The reference to an "individual" health insurance contract is added to clarify
the applicability of this section.

The reference to disability payments "under the contract" is added for clarity.

The prohibition that a health insurance contract may not "contain a provision
that reduces" payments is substituted for the former prohibition that a health
insurance contract may not "reduce" payments for accuracy and clarity.

The reference to an "individual" entitled to receive disability payments is
substituted for the former references to a "person" since only an individual
would be entitled to receive payments for a disability.

The former reference to a health insurance "disability" contract is deleted as
unnecessary in light of the reference to "disability payments under the
contract".

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