MARVIN MANDEL, Governor                                  813

471(1) OR (3) 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 HIM, WITHOUT
EVIDENCE OF INSURABILITY, AN INDIVIDUAL POLICY OF
[[HEALTH]] HOSPITAL AND MEDICAL INSURANCE COVERING HIM
AND ANY OF HIS DEPENDENTS WHO WERE COVERED UNDER THE
GROUP POLICY- THE INDIVIDUAL POLICY SHALL BECOME
EFFECTIVE IMMEDIATELY FOLLOWING THE TERMINATION OF
COVERAGE UNDER THE GROUP [[OR BLANKET]] POLICY.

(B)    THE INDIVIDUAL CONVERTED POLICIES MUST PROVIDE
BENEFITS AS REQUIRED BY THE COMMISSIONER [[OR WAS
PROVIDED BY THE GROUP OR BLANKET POLICY]]. THE
COMMISSIONER MAY ESTABLISH DIFFERENT REQUIREMENTS AND
DIFFERENT LEVELS OF [[REQUIREMENTS]] BENEFITS FOR VARIOUS
TYPES OR CATEGORIES OF COVERAGE AND FOR VARYING TYPES OF
GROUP [[AND BLANKET]] POLICIES. IN ESTABLISHING MINIMUM
REQUIREMENTS, THE COMMISSIONER MAY ESTABLISH EXCLUSIONS
AND BENEFIT LIMITATIONS WHICH HE DEEMS APPROPRIATE. THE
COMMISSIONER MAY EXEMPT CERTAIN TYPES OF GROUP [[OR
BLANKET]] POLICIES, AND CERTAIN TYPES OF COVERAGE UNDER
SUCH POLICIES, FROM THE REQUIREMENTS OF THIS SECTION,
WHERE, IN HIS DISCRETION HE 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 [[OR BLANKET]] COVERAGE OR BY HEALTH
PROGRAMS SPONSORED BY ANY GOVERNMENT OR BY THE GROUP [[OR
BLANKET]] POLICY HOLDER.

(C)    THE COMMISSIONER SHALL ESTABLISH NOTIFICATION
REQUIREMENT FOR THE INSURER TO THE PERSON WHOSE COVERAGE
IS BEING TERMINATED OF HIS RIGHT OF CONVERSION, AND
REQUIREMENTS REGARDING THE TIMELY ELECTION OF THE
CONVERSION PRIVILEGE. THE REQUIREMENTS FOR NOTIFICATION
SHALL INCLUDE, BUT NEED NOT BE LIMITED TO, A PROVISION IN
ANY CERTIFICATES FURNISHED PERSONS COVERED UNDER GROUP
AND BLANKET HEALTH INSURANCE POLICIES SETTING FORTH THE
CONDITIONS APPLICABLE TO ELECTION OF THE CONVERSION
PRIVILEGE.

(D)    AFTER JANUARY 1, 1978 THE PROVISIONS OF THIS
SECTION SHALL APPLY TO ALL GROUP [[AND BLANKET]] POLICIES
DELIVERED OR RENEWED IN THE STATE, [[AND TO ALL GROUP AND
BLANKET POLICIES ISSUED IN OTHER STATES UNDER WHICH
CERTIFICATES ARE DELIVERED IN THIS STATE,]] UPON THE
EFFECTIVE DATE OR RENEWAL ANNIVERSARY DATE, WHICHEVER IS
LATER, OF THE POLICY [[OR CERTIFICATE]].

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1976.

Approved May 4, 1976.