2. Notice of rate increase on new business. When an insurer offering group health insurance, except for accidental injury, specified disease, hospital indemnity, disability income, Medicare supplement, long-term care or other limited benefit group health insurance, quotes a rate for new business, it must disclose any rate increase that the insurer anticipates implementing within the following 90 days. If the quote is in writing, the disclosure must also be in writing. If such disclosure is not provided, an increase may not be implemented until at least 90 days after the date the quote is provided. For small group health plan rates subject to section 2808-B, subsection 2-B, if the increase is pending approval at the time of notice, the disclosure must state that the increase is subject to regulatory approval.

PART G

Sec. G-1. 24-A MRSA §2850-B, sub-§5 is enacted to read:

5. Association plans.__The requirements of this subsection apply to group contracts that are subject to this section and that are issued to association groups pursuant to section 2805-A.__ Carriers shall renew coverage for association members if coverage through an association is terminated because the association ceases to exist, changes its membership eligibility criteria, fails to pay premiums, commits fraud or misrepresentation or voluntarily terminates the group policy.

A.__If coverage to an employer through an association is terminated, the carrier shall renew the coverage with the employer becoming the policyholder.

B.__If coverage to an individual member of an association is terminated, the carrier shall renew the coverage with the individual becoming the policyholder.__A carrier that has been granted an exemption pursuant to section 2736-C, subsection 9 does not lose that exemption simply by virtue of renewing coverage to individuals under this paragraph.