PARRIS N. GLENDENING, Governor

Ch. 294

(1) FOR NONPAYMENT OF THE REQUIRED PREMIUM;

(2) WHERE THE POLICYHOLDER OR PLAN SPONSOR HAS PERFORMED
AN ACT OR PRACTICE THAT CONSTITUTES FRAUD;

(3) WHERE THE POLICYHOLDER OR PLAN SPONSOR HAS MADE AN
INTENTIONAL MISREPRESENTATION OF MATERIAL FACT UNDER THE TERMS OF THE
COVERAGE;

(4) WHERE THE POLICYHOLDER OR PLAN SPONSOR HAS FAILED TO
COMPLY WITH A MATERIAL PLAN PROVISION RELATING TO THE EMPLOYER
CONTRIBUTIONS OR GROUP PARTICIPATION RULES;

(5) WHERE THE CARRIER ELECTS NOT TO RENEW ALL GROUP HEALTH
BENEFIT PLANS IN THE STATE;

(6) IN THE CASE OF A HEALTH MAINTENANCE ORGANIZATION, WHERE
THERE IS NO LONGER ANY ENROLLEE WHO LIVES, RESIDES, OR WORKS IN THE
HEALTH MAINTENANCE ORGANIZATION'S APPROVED SERVICE AREA;

(7) IN THE CASE OF A CARRIER THAT OFFERS COVERAGE ONLY
THROUGH ONE OR MORE BONA FIDE ASSOCIATIONS, WHEN THE MEMBERSHIP OF
AN EMPLOYER IN THE ASSOCIATION CEASES AND NONRENEWAL UNDER THIS ITEM
IS APPLIED UNIFORMLY WITHOUT REGARD TO ANY HEALTH STATUS-RELATED
FACTOR RELATING TO ANY COVERED INDIVIDUAL; OR

(8) THE CARRIER MAKES AN ELECTION UNDER § 772 OF THIS SUBTITLE.

772.

(A) A CARRIER THAT ELECTS NOT TO RENEW ALL OF A PARTICULAR TYPE OF
COVERAGE OR POLICY FORM IN THE STATE SHALL:

(1) PROVIDE NOTICE OF THE NONRENEWAL AT LEAST 90 DAYS BEFORE
THE DATE OF THE NONRENEWAL TO EACH AFFECTED:

(I) POLICYHOLDER;

(II) PLAN SPONSOR;

(III) PARTICIPANT; AND

(IV) BENEFICIARY;

(2) OFFER TO EACH AFFECTED PLAN SPONSOR THE OPTION TO
PURCHASE ANY OTHER HEALTH INSURANCE COVERAGE CURRENTLY BEING
OFFERED BY THE CARRIER; AND

(3) ACT UNIFORMLY WITHOUT REGARD TO THE CLAIMS EXPERIENCE
OF ANY AFFECTED PLAN SPONSOR, OR ANY HEALTH STATUS-RELATED FACTOR OF
ANY AFFECTED INDIVIDUAL

(B) A CARRIER MAY ELECT NOT TO RENEW ALL GROUP HEALTH BENEFIT
PLANS IN THE STATE.

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