WILLIAM DONALD SCHAEFER, Governor                         Ch. 285

(2) The assumption of custody, pending adoption, of a prospective adoptive
child by a prospective adoptive parent.

(b)     (1) All individual insurance policies providing coverage on an expense
incurred basis and individual service or indemnity type contracts issued by a nonprofit
health service plan which provide coverage for a family member of the insured or
subscriber shall, as to such family members' coverage, provide that the health insurance
benefits applicable for children OR GRANDCHILDREN shall be payable with respect to a
child OR GRANDCHILD newly born to or newly adopted by the insured or subscriber from
the moment of birth of the newly born child OR GRANDCHILD or the date of adoption.

(2)     All group health insurance policies providing coverage on an expense
incurred basis to cover employees of an employer or employers or members of a union or
unions which provide coverage for dependents of a covered employee or member, shall
provide that the health insurance benefits applicable for dependent children OR
GRANDCHILDREN shall be payable with respect to a child OR GRANDCHILD newly born
to or newly adopted by the employee or member from the moment of birth of the newly
born child OR GRANDCHILD or the date of adoption.

(3)     For the purpose of coverage under this section, any insurer that issues
an individual or group health insurance policy that provides coverage on an expense
incurred basis shall offer, upon request, to any insured or subscriber, regardless of marital
status, family members' coverage.

(4)     Every insurer that issues a policy that provides coverage other than
family members' coverage shall provide to the policyholder a notice that coverage of
newly born or newly adopted children OR GRANDCHILDREN is not provided under the
policy and shall inform the insured of the right and conditions to purchase family member
coverage as provided under this section.

(5)     (i) An insurer under this section may require proof that the insured is
the parent of a newly born or newly adopted child OR GRANDPARENT OF A NEWLY
BORN OR NEWLY ADOPTED GRANDCHILD.

(ii) The insurer shall pay the cost of providing the proof required
under this paragraph.

(6) TO BE ELIGIBLE FOR COVERAGE UNDER THIS SECTION, A GRANDCHILD
MUST BE A DEPENDENT OF AND IN THE COURT-ORDERED CUSTODY OF THE INSURED.

(c)     The coverage for newly born and newly adopted children OR
GRANDCHILDREN shall consist of coverage of injury or sickness including the necessary
care and treatment of medically diagnosed congenital defects and birth abnormalities.

(d)     If payment of a specific premium or subscription fee is required to provide
coverage for a child OR GRANDCHILD, the policy or contract may require that
notification of birth of a newly born or adoption of a newly adopted child OR
GRANDCHILD and payment of the required premium or fees must be furnished to the
insurer or nonprofit health service plan within 31 days after the date of birth or date of
adoption in order to have the coverage continue beyond such 31-day period.

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