Ch. 35

1997 LAWS OF MARYLAND

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, §§ 702(a) and (b)(1)(iii) and (2) and 703(a) and
(d)(1).

In subsection (a)(1) of this section, the reference to "all risks" is substituted
for the former reference to "the entire pool of risks" to avoid confusion with
the defined term "Pool".

In subsection (c) of this section, the former reference to "all health benefit
plans issued, delivered, or renewed after June 30, 1996" is deleted as obsolete
since that date has passed.

Former Art. 48A, § 702(b)(l)(i) and (ii), which phased in, from July 1, 1994
through June 30, 1996, the limits on the rate a carrier may charge, are
transferred to the Session Laws.

Defined terms: "Carrier" § 15-1201
"Commissioner" § 1-101
"Health benefit plan" § 15-1201

15-1206. MISCELLANEOUS OPERATIONS REQUIREMENTS FOR CARRIERS.

(A) TRANSFERS OF SMALL EMPLOYERS.

(1) A CARRIER MAY NOT ARBITRARILY TRANSFER A SMALL EMPLOYER
INVOLUNTARILY INTO OR OUT OF A HEALTH BENEFIT PLAN.

(2) A CARRIER MAY NOT OFFER TO TRANSFER A SMALL EMPLOYER
INTO OR OUT OF A HEALTH BENEFIT PLAN UNLESS THE OFFER TO TRANSFER IS
MADE TO ALL SMALL EMPLOYERS WITH SIMILAR RISK ADJUSTMENT FACTORS.

(B) DISCLOSURES IN SOLICITATION AND SALES MATERIALS.

A CARRIER SHALL MAKE A REASONABLE DISCLOSURE IN ITS SOLICITATION
AND SALES MATERIALS OF:

(1) THE PROVISIONS THAT RELATE TO THE CARRIER'S RIGHT TO
CHANGE PREMIUM RATES, INCLUDING ANY FACTORS THAT MAY AFFECT THE
CHANGES IN PREMIUM RATES;

(2) THE PROVISIONS THAT RELATE TO RENEW ABILITY OF POLICIES
AND CONTRACTS;

(3) THE PROVISIONS THAT RELATE TO PREEXISTING CONDITIONS; AND

(4) THE PROVISIONS OF § 15-1209 OF THIS SUBTITLE THAT REQUIRE AN
EMPLOYER TO MAKE DEPENDENT COVERAGE AVAILABLE TO ELIGIBLE EMPLOYEES
BUT DO NOT REQUIRE THE EMPLOYER TO MAKE A CONTRIBUTION TO THE
PREMIUM PAYMENTS FOR THAT DEPENDENT COVERAGE.

(C) MINIMUM PARTICIPATION REQUIREMENTS.

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