2866

LAWS OP MARYLAND

Ch. 756

(I)  ANY 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 WHICH
PROVIDES GROUP HOSPITAL, MEDICAL, OR SURGICAL BENEFITS OFFERED TO
THE INSURED EMPLOYEES OF THE EMPLOYER.

(4) "INSURED" MEANS AN EMPLOYEE WHO IS A RESIDENT OF
THIS STATE AND COVERED UNDER A GROUP CONTRACT FOR A PERIOD OF NOT
LESS THAN 3 MONTHS.

(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 AN INSURED AFTER
AN APPLICABLE CHANGE IN STATUS.

(D)  ANY CONTINUATION COVERAGE WHICH IS ELECTED BY OR ON
BEHALF OF THE INSURED 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 INSURED FAILS TO MAKE
TIMELY PAYMENT OF ANY AMOUNT REQUIRED UNDER SUBSECTION (E)(2) OF
THIS SECTION;

(3)  THE DATE ON WHICH THE INSURED 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

(II)  WITH A HEALTH MAINTENANCE ORGANIZATION;

(4)  THE DATE ON WHICH THE INSURED BECOMES ENTITLED TO
BENEFITS UNDER TITLE XVIII OF THE SOCIAL SECURITY ACT; OR

(5)  THE DATE ON WHICH THE INSURED ACCEPTS HOSPITAL,
MEDICAL, OR SURGICAL COVERAGE UNDER ANY NONGROUP CONTRACT OR
POLICY:

(I)  WRITTEN ON AN EXPENSE INCURRED BASIS; OR

(II)  WITH A HEALTH MAINTENANCE ORGANIZATION;