WILLIAM DONALD SCHAEFER, Governor Ch. 236

certain circumstances; and generally relating to insurance coverage for surviving
spouses and employees who are involuntarily terminated.

BY repealing and reenacting, with amendments,
Article 48A - Insurance Code
Section 490G(a) and (b), and 490-1 (a) and (b)
Annotated Code of Maryland
(1986 Replacement Volume and 1989 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article 48A - Insurance Code

490G.

(a) (1) In this section the following words have the meanings indicated.

(2) "Applicable change in status" means the death of the insured.

(3) "Dependent child" means an individual who:
(i) Is a child of the insured; and

(ii) Either was covered under the group insurance contract as a
qualified or an eligible dependent of the insured immediately prior to the applicable
change in status or was born to a qualified secondary beneficiary as defined in
subsection (a)(6)(i) of this section after the applicable change in status.

(4) "Group contract" means:

(i) Any insurance contract or policy issued or delivered in this State
to the employer of the insured by a nonprofit health service insurance plan or an
insurance company which provides group hospital, medical, or surgical benefits to the
employees of the employer on an expense-incurred basis; or

(ii) Any contract between the employer of the insured and a health
maintenance organization certified under Title 19, Subtitle 7 of the Health - General
Article to provide hospital, medical, or surgical benefits to the employees of the
employer.

(5) "Insured" means an employee who is a resident of this State and
covered under a CURRENT OR PREDECESSOR group contract WITH THE SAME
EMPLOYER for a period not less than 3 months.

(6) "Qualified secondary beneficiary" means, with respect to the insured,
an individual other than the insured who is:

(i) A beneficiary under the group contract as the spouse of the
insured for at least the immediately preceding 30-day period immediately preceding the
applicable change in status; or

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