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HARRY HUGHES, Governor 1791
nonprofit health service corporations are subject to
the provisions concerning conversion rights; and
generally relating to the conversion of group health
insurance policies.
BY repealing and reenacting, with amendments,
Article 48A — Insurance Code
Section 477K
Annotated Code of Maryland
(1972 Replacement Volume and 1978 Supplement)
BY adding to
Article 48A — Insurance Code
Section 361D 354S
Annotated Code of Maryland
(1972 Replacement Volume and 1978 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
be repealed, amended, or enacted to read as follows:
Article 481 - Insurance Code
477K.
(a) All group [hospital and medical] insurance policies
issued pursuant to § 471 [(1) or (3)] , WHICH INSURE
EMPLOYEES OR MEMBERS FOR HOSPITAL, SURGICAL, OR MAJOR
MEDICAL INSURANCE ON AN EXPENSE INCURRED OH 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 him, without evidence of
insurability, an individual policy of hospital and medical
insurance covering him and any of his 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.
(b) 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 he 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 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
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