2548

LAWS OF MARYLAND

Ch. 681

(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 OFFERED TO THE EMPLOYEES
OF THE EMPLOYER.

(5)  "INSURED" MEANS AN EMPLOYEE WHO IS A RESIDENT OF
THIS STATE AND COVERED UNDER A GROUP CONTRACT 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)  IMMEDIATELY PRIOR TO ANY APPLICABLE CHANGE
IN STATUS, 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

(II)  A DEPENDENT CHILD.

(B)  EVERY GROUP CONTRACT SHALL PROVIDE CONTINUATION
BENEFITS MEETING THE REQUIREMENTS OF THIS SECTION.

(C)  SUBJECT TO SUBSECTION (D) OF THIS SECTION, THE GROUP
CONTRACT SHALL PROVIDE CONTINUATION BENEFITS TO A QUALIFIED
SECONDARY BENEFICIARY AFTER AN APPLICABLE CHANGE IN STATUS.

(D)  ANY CONTINUATION COVERAGE WHICH IS ELECTED BY OR ON
BEHALF OF A QUALIFIED SECONDARY BENEFICIARY UNDER THE GROUP
CONTRACT SHALL BE FOR A PERIOD BEGINNING ON THE DATE OF THE
APPLICABLE CHANGE IN STATUS AND ENDING ON THE EARLIEST OF ANY OF
THE FOLLOWING:

(1)  18 MONTHS AFTER THE DATE OF THE APPLICABLE CHANGE
IN STATUS;

(2)  THE DATE ON WHICH THE QUALIFIED SECONDARY
BENEFICIARY FAILS TO MAKE TIMELY PAYMENT OF ANY AMOUNT REQUIRED
UNDER SUBSECTION (E)(2) OF THIS SECTION;

(3)  THE DATE ON WHICH THE QUALIFIED SECONDARY
BENEFICIARY BECOMES ELIGIBLE FOR HOSPITAL, MEDICAL, OR SURGICAL
BENEFITS UNDER A AN INSURED OR SELF-INSURED GROUP HEALTH BENEFIT
PROGRAM OR PLAN, OTHER THAN THE GROUP CONTRACT, WHICH IS:

(I) WRITTEN ON AN EXPENSE INCURRED BASIS; OR