WILLIAM DONALD SCHAEFER, Governor Ch. 588

PAYABLE SHALL BE AT LEAST 120 DAYS AND SHALL BE AT A RATE WHICH
IS NOT LESS THAN 75 PERCENT OF THE PER DIEM RATE WHICH AMOUNT MAY
NOT EXCEED $30 PER DAY. (II) JUSTIFICATION FOR LENGTH OF STAY
SHALL BE DOCUMENTED BY A QUALIFIED PSYCHIATRIST OR PSYCHOLOGIST
BASED ON A MONTHLY EVALUATION OF THE PATIENT WHICH IS AVAILABLE
TO THE INSURANCE COMPANY AT THEIR REQUEST. (III) THE INSURANCE
COMPANY, AS A CONDITION PRECEDENT TO THE ALLOWANCE FOR BENEFITS

FOR RESIDENCY IN A PSYCHIATRIC HALFWAY HOUSE, MAY REQUIRE THE
CERTIFICATION IN WRITING BY A LICENSED PSYCHIATRIST OR
PSYCHOLOGIST THAT RESIDENCY IN A PSYCHIATRIC HALFWAY HOUSE IS
MEDICALLY NECESSARY EITHER IN LIEU OF OR IN COMBINATION WITH
CONFINEMENT AS AN INPATIENT IN A HOSPITAL AND WILL REDUCE THE

LENGTH OF CONFINEMENT AS AN INPATIENT IN A HOSPITAL. (IV) THE

TOTAL BENEFITS PAYABLE FOR TREATMENT AS AN INPATIENT IN A
HOSPITAL OR RESIDENCY IN A PSYCHIATRIC HALFWAY HOUSE OR A
COMBINATION OF BOTH MAY NOT EXCEED THE COST OF BENEFITS
AVAILABLE ANNUALLY FOR TREATMENT AS AN INPATIENT IN A HOSPITAL.

(b) The provisions of this section apply to all policies
issued, renewed, modified, altered, amended, or reissued on or
after July 1, 1973.

SECTION 2. AND BE IT FURTHER ENACTED, That, this Act shall
apply to any policy on contract issued on renewed after January
1, 1989.

SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1988.

Approved May 27, 1988.

CHAPTER 588

(Senate Bill 409)

AN ACT concerning

Telephone Solicitation Sales

FOR the purpose of regulating certain telephone solicitation
sales of consumer goods and services; prohibiting certain
telephone sales solicitation practices; providing penalties
for the violation of certain prohibited telephone sales
solicitation practices; requiring that certain contracts
solicited by telephone be reduced to writing in order to be
enforceable; prohibiting certain actions by merchants
regarding telephone solicitation; requiring that a contract
made pursuant to a telephone solicitation meet certain

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