Ch. 17 LAWS OF MARYLAND

(I) AN EMPLOYEE OR MEMBER WHO IS COVERED UNDER
A GROUP POLICY; OR

(11} AN ELIGIBLE DEPENDENT OF AN EMPLOYEE OR
MEMBER WHO IS COVERED UNDER A GROUP POLICY.

(B) ALL GROUP INSURANCE POLICIES ISSUED PURSUANT TO THIS
SUBTITLE WHICH INSURE EMPLOYEES OR MEMBERS FOR HOSPITAL.
SURGICAL, OR MAJOR MEDICAL INSURANCE ON AN EXPENSE-INCURRED
OR SERVICE BASIS OTHER THAN FOR SPECIFIC DISEASES OR FOR
ACCIDENTAL INJURIES ONLY. SHALL PROVIDE THAT ANY INSURED
PERSON WHOSE INSURANCE IS TERMINATED FOR ANY REASON OTHER
THAN FAILURE TO PAY ANY REQUIRED PREMIUM OR CONTRIBUTION,
SHALL UPON TIMELY WRITTEN REQUEST, HAVE ISSUED TO THE
INSURED PERSON, WITHOUT EVIDENCE OF INSURABILITY. AN
INDIVIDUAL POLICY OF HOSPITAL AND MEDICAL INSURANCE COVERING
THE INSURED PERSON AND ANY OF THE INSURED PERSON'S ELIGIBLE
DEPENDENTS WHO WERE COVERED UNDER THE GROUP POLICY. THE
INDIVIDUAL POLICY SHALL BECOME EFFECTIVE IMMEDIATELY
FOLLOWING THE TERMINATION OF COVERAGE UNDER THE GROUP
POLICY.

(C) THE INDIVIDUAL CONVERTED POLICIES MUST PROVIDE
BENEFITS AS REQUIRED BY THE COMMISSIONER. THE COMMISSIONER
MAY ESTABLISH DIFFERENT REQUIREMENTS AND DIFFERENT LEVELS
OF BENEFITS FOR VARIOUS TYPES OR CATEGORIES OF COVERAGE AND
FOR VARYING TYPES OF GROUP POLICIES. IN ESTABLISHING MINIMUM
REQUIREMENTS. THE COMMISSIONER MAY ESTABLISH EXCLUSIONS AND
BENEFIT LIMITATIONS WHICH THE COMMISSIONER DEEMS
APPROPRIATE. THE COMMISSIONER MAY EXEMPT CERTAIN TYPES OF
GROUP POLICIES, AND CERTAIN TYPES OF COVERAGE UNDER SUCH
POLICIES. FROM THE REQUIREMENTS OF THIS SECTION, WHERE. IN THE
COMMISSIONER'S DISCRETION THE COMMISSIONER DEEMS SUCH
EXEMPTION APPROPRIATE. THE COMMISSIONER MAY ESTABLISH
CONDITIONS UNDER WHICH THE CONVERSION PRIVILEGE SHALL NOT
BE OPERATIVE. SUCH CONDITIONS MAY INCLUDE. BUT NEED NOT BE
LIMITED TO, REPLACEMENT OF A TERMINATED COVERAGE BY SIMILAR
GROUP COVERAGE OR BY HEALTH PROGRAMS SPONSORED BY ANY
GOVERNMENT OR BY THE GROUP POLICYHOLDER. THE PREMIUM FOR
THE CONVERTED POLICY SHALL BE DETERMINED IN ACCORDANCE
WITH THE INSURER'S TABLE OF PREMIUM RATES APPLICABLE TO THE
AGE AND CLASS OF RISK OF EACH PERSON TO BE COVERED UNDER
THAT POLICY AND TO THE TYPE AND AMOUNT OF INSURANCE
PROVIDED.

(D) THE COMMISSIONER SHALL ESTABLISH NOTIFICATION

CONVERSION, AND REQUIREMENTS REGARDING THE TIMELY ELECTION

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