LD 1507
pg. 1
LD 1507 Title Page An Act To Clarify and Update the Laws Related to Health Insurance Page 2 of 12
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LR 1913
Item 1

 
Be it enacted by the People of the State of Maine as follows:

 
PART A

 
Sec. A-1. 24-A MRSA §2850-B, sub-§3, ¶¶G and H, as enacted by PL 1997,
c. 445, §30 and affected by §32, are amended to read:

 
G. When the carrier ceases offering a product and meets the
following requirements:

 
(1) In the large group market:

 
(a) The carrier must provide notice to the
policyholder and to the insureds at least 90 days
before termination;

 
(b) The carrier must offer to each policyholder
the option to purchase any other product currently
being offered in the large group market; and

 
(c) In exercising the option to discontinue the
product and in offering the option of coverage
under division (b), the carrier must act uniformly
without regard to the claims experience of the
policyholders or the health status of the insureds
or prospective insureds;

 
(2) In the small group market:

 
(a) The carrier shall replace the product with a
product that complies with the requirements of
this section, including renewability, and with
section 2808-B;

 
(b) The superintendent shall find that the
replacement is in the best interests of the
policyholders; and

 
(c) The carrier shall provide notice to the
policyholder and to the insureds at least 90 days
before replacement; or

 
(3) In the individual market:

 
(a) The carrier shall replace the product with a
product that complies with the requirements of
this section, including renewability, and with
section 2736-C;


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