PARRIS N. GLENDENING, Governor

Ch. 35

(4) "INSURED" MEANS AN EMPLOYEE WHO IS A RESIDENT OF THE
STATE AND COVERED UNDER A CURRENT OR PREDECESSOR GROUP CONTRACT
WITH THE SAME EMPLOYER FOR AT LEAST 3 MONTHS BEFORE DEATH.

(5) "QUALIFIED SECONDARY BENEFICIARY" MEANS AN INDIVIDUAL

WHO IS:

(I) A BENEFICIARY UNDER THE GROUP CONTRACT AS THE
SPOUSE OF THE INSURED FOR AT LEAST 30 DAYS IMMEDIATELY PRECEDING THE
DEATH OF THE INSURED; OR

(II) A DEPENDENT CHILD OF THE INSURED.

(B) REQUIRED.

(1) EACH GROUP CONTRACT IN FORCE ON THE DATE OF THE DEATH OF
THE INSURED SHALL PROVIDE CONTINUATION COVERAGE IN ACCORDANCE WITH
THIS SECTION.

(2) SUBJECT TO SUBSECTION (C) OF THIS SECTION, IF CONTINUATION
COVERAGE IS ELECTED BY OR ON BEHALF OF A QUALIFIED SECONDARY
BENEFICIARY, THE GROUP CONTRACT SHALL PROVIDE CONTINUATION COVERAGE
TO THE QUALIFIED SECONDARY BENEFICIARY AFTER THE DEATH OF THE INSURED.

(C) PERIOD OF CONTINUATION COVERAGE.

CONTINUATION COVERAGE THAT IS ELECTED BY OR ON BEHALF OF A
QUALIFIED SECONDARY BENEFICIARY UNDER THE GROUP CONTRACT SHALL
BEGIN ON THE DATE OF THE DEATH OF THE INSURED AND END ON THE EARLIEST
OF THE FOLLOWING:

(1) 18 MONTHS AFTER THE DATE OF THE DEATH OF THE INSURED;

(2) THE DATE ON WHICH THE QUALIFIED SECONDARY BENEFICIARY
FAILS TO MAKE TIMELY PAYMENT OF AN AMOUNT REQUIRED UNDER SUBSECTION
(D)(2) OF THIS SECTION;

(3) THE DATE ON WHICH THE QUALIFIED SECONDARY BENEFICIARY
BECOMES ELIGIBLE FOR HOSPITAL, MEDICAL, OR SURGICAL BENEFITS UNDER AN
INSURED OR SELF-INSURED GROUP HEALTH BENEFIT PROGRAM OR PLAN, OTHER
THAN THE GROUP CONTRACT, THAT IS WRITTEN ON AN EXPENSE-INCURRED BASIS
OR IS WITH A HEALTH MAINTENANCE ORGANIZATION;

(4) THE DATE ON WHICH THE QUALIFIED SECONDARY BENEFICIARY
BECOMES ENTITLED TO BENEFITS UNDER TITLE XVIII OF THE SOCIAL SECURITY

ACT;

(5) THE DATE ON WHICH THE QUALIFIED SECONDARY BENEFICIARY
ACCEPTS HOSPITAL, MEDICAL, OR SURGICAL COVERAGE UNDER A NONGROUP
CONTRACT OR POLICY THAT IS WRITTEN ON AN EXPENSE-INCURRED BASIS OR IS
WITH A HEALTH MAINTENANCE ORGANIZATION;

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