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1792 LAWS OF MARYLAND Ch. 656
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.
(c) The Commissioner shall establish notification
requirements 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. CONTINUATION OF
GROUP COVERAGE AT THE EXPENSE OF THE INSURED PERSON MAY BE
REQUIRED FOR A PERIOD NOT TO EXCEED 6 MONTHS FROM THE DATE
OF THE TERMINATION OF THE GROUP CONTRACT,
(d) [After January 1, 1978 the] THE provisions of this
section shall apply to all group policies delivered or
renewed in the State, upon the effective date or renewal
anniversary date, whichever is later, of the policy.
361D.
THE PROVISIONS OF SECTION 477K SHALL APPLY TO GROUP
POLICIES ISSUED BY NONPROFIT HEALTH SERVICE CORPORATIONS.
354S. CONVERSION RIGHTS OF GROUP SUBSCRIBERS.
EVERY GROUP CONTRACT DELIVERED OR ISSUED FOR DELIVERY
IN THIS STATE BY A NONPROFIT HEALTH SERVICE PLAN, WHICH
PROVIDES HOSPITAL. MEDICAL, OR SURGICAL BENEFITS FOR
EMPLOYEES OR MEMBERS AND THEIR DEPENDENTS SHALL CONTAIN A
PROVISION FOR GRANTING THE EMPLOYEE OR MEMBER THE RIGHT TO
CONVERT TO INDIVIDUAL COVERAGE IN THE EVENT OF TERMINATION
OF EMPLOYMENT OR MEMBERSHIP IN THE GROUP.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1979.
Approved May 29, 1979.
CHAPTER 657
(House Bill 1617)
AN ACT concerning
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