PARRIS N. GLENDENING, Governor

Ch. 256

(2) Each policy or contract subject to this subsection shall provide that the
health insurance benefits applicable:

(I) for children or grandchildren shall be payable for a newly born or
newly adopted dependent child or grandchild from the moment of birth or date of
adoption of the child or grandchild; AND

(II) FOR A MINOR FOR WHOM GUARDIANSHIP IS GRANTED BY
COURT OR TESTAMENTARY APPOINTMENT SHALL BE PAYABLE FROM THE DATE OF
APPOINTMENT.

(c) On request, an insurer or nonprofit health service plan that issues an
individual or group health insurance policy that provides coverage on an
expense-incurred basis shall offer family members' coverage to an insured or subscriber
regardless of the marital status of the insured or subscriber.

(d) Each insurer or nonprofit health service plan that issues a policy that does not
provide family members' coverage shall:

(1) provide notice to the policyholder that coverage for a newly born or
newly adopted child or grandchild OR A MINOR FOR WHOM GUARDIANSHIP IS
GRANTED BY COURT OR TESTAMENTARY APPOINTMENT is not provided under the
policy; and

(2) inform the insured of the right and conditions to purchase family
members' coverage under this section.

(e) To be eligible for coverage under this section,:

(1) a grandchild must be a dependent, and in the court-ordered custody, of
the insured AND A MINOR FOR WHOM GUARDIANSHIP IS GRANTED BY COURT OR
TESTAMENTARY APPOINTMENT MUST BE A DEPENDENT AND IN THE CUSTODY OF
THE INSURED; AND

(2) A MINOR MUST BE A DEPENDENT AND IN THE CUSTODY OF THE
INSURED AS A RESULT OF A GUARDIANSHIP, OTHER THAN A TEMPORARY GUARDIANSHIP
OF LESS THAN 12 MONTHS DURATION, GRANTED BY COURT OR TESTAMENTARY
APPOINTMENT.

(f) Coverage for a newly born or newly adopted child or grandchild OR A MINOR
FOR WHOM GUARDIANSHIP IS GRANTED BY COURT OR TESTAMENTARY
APPOINTMENT shall consist of coverage for injury or sickness, including the necessary
care and treatment of medically diagnosed congenital defects and birth abnormalities.

(g) If payment of a specific premium or subscription fee is required to provide
coverage for a child or grandchild OR A MINOR FOR WHOM GUARDIANSHIP IS
GRANTED BY COURT OR TESTAMENTARY APPOINTMENT, the policy or contract may
require notification of a birth [or adoption], ADOPTION, OR APPOINTMENT and
payment of the required premium or fee to the insurer or nonprofit health service plan
within 31 days after the date of [birth or date of adoption] BIRTH, DATE OF ADOPTION,
OR DATE OF COURT OR TESTAMENTARY APPOINTMENT in order to continue coverage
beyond the 31-day period.

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