Ch. 35

1997 LAWS OF MARYLAND

LIABLE TO A QUALIFIED SECONDARY BENEFICIARY FOR BENEFITS THAT
OTHERWISE WOULD HAVE BEEN PAYABLE UNDER THIS SECTION IF THE
TERMINATION:

(1) IS MADE IN GOOD FAITH;

(2) IS REASONABLE UNDER THE CIRCUMSTANCES; AND

(3) IS NOT THE RESULT OF A MUTUAL OR MATERIAL MISTAKE OF FACT.
(K) CONVERSION PRIVILEGES NOT AFFECTED.

THIS SECTION DOES NOT AFFECT OR LIMIT THE RIGHT OF A QUALIFIED
SECONDARY BENEFICIARY TO CONVERSION PRIVILEGES UNDER A GROUP
CONTRACT.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 490G and, as they referred to former § 490G,
§§ 354GG and 477HH.

Throughout this section, references to the "death of the insured" and
variations on that phrase are substituted for the former references to an
"applicable change in status" for specificity. Therefore, in subsection (a) of
this section, the former definition of "applicable change in status" is deleted
as unnecessary in light of the use of the phrase "death of the insured".

In subsection (a)(2)(i) of this section, the reference to a "group contract" is
substituted for the former reference to "group insurance contract" to use the
defined term and for consistency within this section.

In subsection (a)(3)(i) of this section, the reference to a nonprofit health
service "insurance" plan is deleted for consistency with terminology used
throughout this article.

In subsection (a)(4) of this section, the phrase "before death" is added for
clarity.

In subsection (b)(1) and (2) of this section, the references to continuation
"coverage" are substituted for the former references to continuation
"benefits" for consistency with terminology used throughout this subtitle.
Similarly, in subsections (e)(1) and (2), (g)(1), and the introductory language
of (j) of this section, the references to "continuation" coverage are added.
Similarly, in subsection (f)(1) of this section, the reference to "continuation
coverage" under this section is substituted for the former reference to "the
benefits" under this section. Similarly, in subsection (f)(2) and (3) of this
section, the references to "continuation coverage" are substituted for the
former references to "such benefits". Similarly, in the introductory language
of subsection (h) of this section, the reference to notice "of the availability of
continuation coverage" is substituted for the former reference to notice "of
the benefits".

In subsection (b)(2) of this section, the phrase "if continuation coverage is

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