PARRIS N. GLENDENING, Governor

Ch. 35

15-210. REINSTATEMENT.

(A) IN GENERAL.

EACH POLICY OF HEALTH INSURANCE SHALL CONTAIN THE FOLLOWING
PROVISION:

"REINSTATEMENT: IF ANY RENEWAL PREMIUM BE NOT PAID WITHIN THE TIME
GRANTED THE INSURED FOR PAYMENT, A SUBSEQUENT ACCEPTANCE OF PREMIUM
BY THE INSURER OR BY ANY AGENT DULY AUTHORIZED BY THE INSURER TO
ACCEPT SUCH PREMIUM, WITHOUT REQUIRING IN CONNECTION THEREWITH AN
APPLICATION FOR REINSTATEMENT, SHALL REINSTATE THE POLICY; PROVIDED,
HOWEVER, THAT IF THE INSURER OR SUCH AGENT REQUIRES AN APPLICATION FOR
REINSTATEMENT AND ISSUES A CONDITIONAL RECEIPT FOR THE PREMIUM
TENDERED, THE POLICY WILL BE REINSTATED UPON APPROVAL OF SUCH
APPLICATION BY THE INSURER OR, LACKING SUCH APPROVAL, UPON THE
FORTY-FIFTH (45TH) DAY FOLLOWING THE DATE OF SUCH CONDITIONAL RECEIPT
UNLESS THE INSURER HAS PREVIOUSLY NOTIFIED THE INSURED IN WRITING OF ITS
DISAPPROVAL OF SUCH APPLICATION. THE REINSTATED POLICY SHALL COVER
ONLY LOSS RESULTING FROM SUCH ACCIDENTAL INJURY AS MAY BE SUSTAINED
AFTER THE DATE OF REINSTATEMENT AND LOSS DUE TO SUCH SICKNESS AS MAY
BEGIN MORE THAN TEN DAYS AFTER SUCH DATE. IN ALL OTHER RESPECTS THE
INSURED AND INSURER SHALL HAVE THE SAME RIGHTS THEREUNDER AS THEY
HAD UNDER THE POLICY IMMEDIATELY BEFORE THE DUE DATE OF THE
DEFAULTED PREMIUM, SUBJECT TO ANY PROVISIONS ENDORSED HEREON OR
ATTACHED HERETO IN CONNECTION WITH THE REINSTATEMENT. ANY PREMIUM
ACCEPTED IN CONNECTION WITH A REINSTATEMENT SHALL BE APPLIED TO A
PERIOD FOR WHICH PREMIUM HAS NOT BEEN PREVIOUSLY PAID, BUT NOT TO ANY
PERIOD MORE THAN SIXTY (60) DAYS PRIOR TO THE DATE OF REINSTATEMENT."

(B) OPTIONAL PROVISION.

THE LAST SENTENCE OF THE PROVISION SET FORTH IN SUBSECTION (A) OF
THIS SECTION MAY BE OMITTED FROM A POLICY THAT THE INSURED MAY
CONTINUE IN EFFECT SUBJECT TO ITS TERMS BY THE TIMELY PAYMENT OF
PREMIUMS:

(1) UNTIL THE INSURED IS AT LEAST 50 YEARS OLD; OR

(2) IF THE POLICY IS ISSUED AFTER THE INSURED IS 44 YEARS OLD, FOR
AT LEAST 5 YEARS AFTER ITS DATE OF ISSUE.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 443.

The quoted language of subsection (a) of this section is the same as the
quoted language of former Art. 48A, § 443.

In subsection (b)(1) and (2) of this section, the references to "the insured" are
added for clarity.

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