Ch. 35

1997 LAWS OF MARYLAND

OR SERVICE BASIS, OTHER THAN A POLICY THAT PROVIDES COVERAGE ONLY FOR
SPECIFIC DISEASES OR FOR ACCIDENTAL INJURIES.

(2) THIS SECTION APPLIES TO EACH GROUP POLICY THAT IS DELIVERED
OR RENEWED IN THE STATE ON THE EFFECTIVE DATE OR RENEWAL ANNIVERSARY
DATE, WHICHEVER IS LATER, OF THE POLICY.

(C) IN GENERAL.

EACH GROUP POLICY SUBJECT TO THIS SECTION SHALL PROVIDE THAT AN
INSURED INDIVIDUAL WHOSE COVERAGE UNDER THE GROUP POLICY IS
TERMINATED FOR ANY REASON OTHER THAN FAILURE OF THE INSURED
INDIVIDUAL TO PAY A REQUIRED PREMIUM OR CONTRIBUTION IS ENTITLED, ON
TIMELY WRITTEN REQUEST AND WITHOUT EVIDENCE OF INSURABILITY, TO AN
INDIVIDUAL POLICY OF HOSPITAL AND MEDICAL INSURANCE.

(D) EXEMPTIONS.

THE COMMISSIONER MAY:

(1) EXEMPT FROM THE REQUIREMENTS OF THIS SECTION CERTAIN
TYPES OF GROUP POLICIES OR CERTAIN TYPES OF COVERAGE UNDER GROUP
POLICIES THAT THE COMMISSIONER CONSIDERS APPROPRIATE; AND

(2) ESTABLISH CONDITIONS UNDER WHICH THE CONVERSION
PRIVILEGE DOES NOT APPLY, WHICH MAY INCLUDE THE REPLACEMENT OF
TERMINATED COVERAGE BY SIMILAR GROUP COVERAGE OR BY A HEALTH
PROGRAM SPONSORED BY A GOVERNMENT OR THE GROUP POLICYHOLDER.

(E) INDIVIDUAL POLICY — COVERAGE.

AN INDIVIDUAL POLICY ISSUED UNDER THIS SECTION SHALL COVER THE
INSURED INDIVIDUAL WHOSE COVERAGE UNDER THE GROUP POLICY IS
TERMINATED AND ANY ELIGIBLE DEPENDENTS OF THAT INSURED INDIVIDUAL
WHO WERE COVERED UNDER THE GROUP POLICY.

(F) SAME — EFFECTIVE DATE.

AN INDIVIDUAL POLICY ISSUED UNDER THIS SECTION SHALL TAKE EFFECT
IMMEDIATELY AFTER THE TERMINATION OF COVERAGE UNDER THE GROUP
POLICY.

(G) SAME — REQUIRED BENEFITS.

(1) AN INDIVIDUAL POLICY ISSUED UNDER THIS SECTION SHALL
PROVIDE THE BENEFITS THAT THE COMMISSIONER REQUIRES.

(2) THE COMMISSIONER MAY ESTABLISH DIFFERENT REQUIREMENTS
AND LEVELS OF BENEFITS FOR VARIOUS TYPES OF GROUP POLICIES AND

COVERAGE.

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