HARRY HUGHES, Governor                                       2865

BY adding to

Article - Health - General
Section 19-703(d)
Annotated Code of Maryland
(1982 Volume and 1985 Supplement)

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

Article 48A - Insurance Code

477K.

(d) 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. EXCEPT AS PROVIDED ELSEWHERE IN THIS ARTICLE,
CONTINUATION [Continuation] of group coverage at the expense of
the insured person may be required for a period not to exceed 6
months.

354FF.

EVERY INSURANCE CONTRACT OR POLICY ISSUED OR DELIVERED IN
THIS STATE TO AN EMPLOYER BY A NONPROFIT HEALTH SERVICE PLAN
WHICH PROVIDES GROUP HOSPITAL, MEDICAL, OR SURGICAL BENEFITS ON
AN EXPENSE INCURRED BASIS SHALL PROVIDE CONTINUATION COVERAGE
REQUIRED UNDER § 490G OF THIS ARTICLE.

477GG.

EVERY CONTRACT OR POLICY ISSUED OR DELIVERED IN THIS STATE
TO AN EMPLOYER BY AN INSURANCE COMPANY WHICH PROVIDES GROUP
HOSPITAL, MEDICAL, OR SURGICAL BENEFITS ON AN EXPENSE INCURRED
BASIS SHALL PROVIDE CONTINUATION COVERAGE REQUIRED UNDER § 490G
OF THIS ARTICLE.

490G.

(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE
MEANINGS INDICATED.

(2)  "APPLICABLE CHANGE IN STATUS" MEANS THE
INVOLUNTARY TERMINATION OF THE INSURED'S EMPLOYMENT OTHER THAN
FOR CAUSE.

(3)  "GROUP CONTRACT" MEANS: