PARRIS N. GLENDENING, Governor                             Ch. 501

(5) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, A
CARRIER MAY DENY COVERAGE TO ANY SELF-EMPLOYED INDIVIDUAL WHO APPLIES FOR
A HEALTH BENEFIT PLAN AT A TIME OTHER THAN THE CARRIER'S ANNUAL OPEN
ENROLLMENT PERIOD.

704A.

IT SHALL BE DEEMED AN UNFAIR TRADE PRACTICE FOR THE PURPOSES OF
SUBTITLE 15 OF THIS ARTICLE ("UNFAIR TRADE PRACTICES"') FOR AN INSURER,
INSURANCE AGENT, OR INSURANCE BROKER TO ARRANGE FOR AN INDIVIDUAL
EMPLOYEE TO APPLY FOR AN INDIVIDUAL POLICY FOR THE PURPOSE OF
SEPARATING THAT EMPLOYEE FROM GROUP HEALTH INSURANCE COVERAGE
PROVIDED IN CONNECTION WITH THE EMPLOYEE'S EMPLOYMENT.

SECTION 2. 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland
read as follows:

Article 48A - Insurance Code

709.

(a) (4) A reinsuring carrier may reinsure [an eligible employee] A GROUP
MEMBER or dependent within a period of 60 days following the commencement of the
GROUP'S coverage [with the small employer]. A reinsuring carrier may reinsure a newly
eligible [employee] GROUP MEMBER or dependent within 60 days of the
commencement of the [eligible employee's] NEW MEMBER'S or dependent's coverage.

SECTION 4. AND BE IT FURTHER ENACTED, That, notwithstanding the
provisions of Section 2 of this Act and Article 48A, § 698A of the Code, Article 48A,
Subtitle 55 of the Code does not apply to the renewal of any health benefit plan that was
issued prior to the effective date of Section 2 of this Act to a self-employed individual by
an authorized insurer that does not have any health benefit plan in force on or after the
effective date of this Act that provides coverage to a small employer (as that term is
defined in Section 2 of Chapter 9 of the Laws of Maryland of 1993) and any renewal of
such a plan is not a renewal of a health benefit plan providing coverage to a small
employer for any purpose under Article 48A, Subtitle 55 of the Code.

SECTION 5. AND BE IT FURTHER ENACTED, That notwithstanding the
provisions of Section 2 of this Act and Article 48A, § 698A of the Code, Article 48A, Subtitle
55 of the Code does not apply to any health benefit plan issued or renewed to any
self-employed individual who purchases health insurance coverage as an individual member
of a group whose membership is not related to employment, whose purpose is not solely the
provision of insurance coverage, and which has been in existence prior to July 1, 1994,
providing individual health insurance coverage to its members.

SECTION 5. 6. AND BE IT FURTHER ENACTED, That the amendments to
Article 48A, § 698 of the Code in Section 2 of this Act that include self-employed
individuals in the provisions of Article 48A, Subtitle 55 of the Code shall take effect
January July 1, 1996.

SECTION 3. 6. 7. AND BE IT FURTHER ENACTED, That Section 2 3 of this Act
is contingent on the taking effect of the contingency provisions specified in Sections 5 and

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