PARRIS N. GLENDENING, Governor

Ch. 35

(2) NOTWITHSTANDING SUBSECTION (B)(1)(II) OF THIS SECTION, A
CARRIER MAY INCLUDE IN A MEDICARE SUPPLEMENT POLICY A PROVISION THAT
COMPLIES WITH SUBSECTION (D) OF THIS SECTION.

(C) POLICY AVAILABILITY.

REGARDLESS OF THE APPLICANT'S AGE, EACH MEDICARE SUPPLEMENT
POLICY OR APPLICABLE CERTIFICATE THAT A CARRIER CURRENTLY HAS
AVAILABLE SHALL BE MADE AVAILABLE TO EACH APPLICANT WHO QUALIFIES
UNDER SUBSECTION (B) OF THIS SECTION.

(D) PREEXISTING CONDITION PROVISIONS.

(1) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, A MEDICARE
SUPPLEMENT POLICY OR CERTIFICATE MAY NOT EXCLUDE OR LIMIT BENEFITS FOR
LOSSES INCURRED MORE THAN 6 MONTHS AFTER THE EFFECTIVE DATE OF
COVERAGE BECAUSE THE LOSSES INVOLVED A PREEXISTING CONDITION.

(2) A MEDICARE SUPPLEMENT POLICY OR CERTIFICATE MAY NOT
DEFINE A PREEXISTING CONDITION MORE RESTRICTIVELY THAN A CONDITION FOR
WHICH A PHYSICIAN GAVE MEDICAL ADVICE OR RECOMMENDED OR GAVE
TREATMENT WITHIN 6 MONTHS BEFORE THE EFFECTIVE DATE OF COVERAGE.

(E) POLICY REPLACEMENT REQUIREMENTS.

IF A MEDICARE SUPPLEMENT POLICY OR CERTIFICATE REPLACES ANOTHER
MEDICARE SUPPLEMENT POLICY OR CERTIFICATE, THE SUCCEEDING CARRIER
SHALL WAIVE THE TIME PERIODS APPLICABLE TO PREEXISTING CONDITIONS,
WAITING PERIODS, ELIMINATION PERIODS, AND PROBATIONARY PERIODS IN THE
NEW MEDICARE SUPPLEMENT POLICY OR CERTIFICATE FOR SIMILAR BENEFITS TO
THE EXTENT THE TIME WAS SPENT UNDER THE ORIGINAL MEDICARE SUPPLEMENT
POLICY OR CERTIFICATE.

(F) CANCELLATION, NONRENEWAL, OR TERMINATION OF POLICY.

A CARRIER MAY NOT CANCEL OR NONRENEW A MEDICARE SUPPLEMENT
POLICY OR CERTIFICATE FOR ANY REASON OTHER THAN FOR NONPAYMENT OF
PREMIUM OR MATERIAL MISREPRESENTATION.

(G) TERMINATION OF GROUP POLICY OR MEMBERSHIP IN GROUP.

(1) (I) IF THE GROUP POLICYHOLDER TERMINATES A GROUP
MEDICARE SUPPLEMENT POLICY WITHOUT REPLACING THE GROUP MEDICARE
SUPPLEMENT POLICY UNDER PARAGRAPH (3) OF THIS SUBSECTION, THE CARRIER
SHALL OFFER EACH CERTIFICATE HOLDER AN INDIVIDUAL MEDICARE
SUPPLEMENT POLICY.

(II) THE CARRIER SHALL OFFER THE CERTIFICATE HOLDER AT
LEAST THE FOLLOWING:

1. AN INDIVIDUAL MEDICARE SUPPLEMENT POLICY THAT
PROVIDES FOR CONTINUATION OF THE BENEFITS CONTAINED IN THE GROUP
POLICY; OR

- 1105 -