S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  8401

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                              May 19, 2009
                               ___________

Introduced  by  M.  of  A.  MORELLE, BRADLEY, DenDEKKER, COLTON, FIELDS,
  JAFFEE, BING, PAULIN, DINOWITZ,  ABBATE,  SPANO,  MILLMAN,  GABRYSZAK,
  PERRY,  CAHILL,  BARRON,  ESPAILLAT,  SCHROEDER,  COOK,  GALEF,  KOON,
  MAISEL, PHEFFER, MAYERSOHN -- Multi-Sponsored by --  M.  of  A.  JOHN,
  MAGEE,  MARKEY,  McENENY,  MENG, SWEENEY, WEISENBERG -- (at request of
  the Governor) -- read once and referred to the Committee on Insurance

AN ACT to amend the insurance law, in relation  to  the  coverage  of  a
  dependent child

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 3221 of the insurance law is amended  by  adding  a
new subsection (r) to read as follows:
  (R)(1)  AS  USED IN THIS SUBSECTION, "DEPENDENT CHILD" MEANS AN UNMAR-
RIED CHILD THROUGH AGE TWENTY-NINE OF  AN  EMPLOYEE  OR  MEMBER  INSURED
UNDER A GROUP CONTRACT, REGARDLESS OF FINANCIAL DEPENDENCE, WHO IS NOT A
NAMED  INSURED  UNDER  ANY  OTHER  GROUP  CONTRACT  OR  GROUP REMITTANCE
CONTRACT AND WHO IS NOT ELIGIBLE FOR COVERAGE UNDER TITLE XVIII  OF  THE
UNITED STATES SOCIAL SECURITY ACT (MEDICARE).
  (2) IN ADDITION TO THE CONVERSION PRIVILEGE AFFORDED BY SUBSECTION (E)
OF  THIS  SECTION  AND THE CONTINUATION PRIVILEGE AFFORDED BY SUBSECTION
(M) OF THIS SECTION, EVERY GROUP CONTRACT DELIVERED OR ISSUED FOR DELIV-
ERY IN THIS STATE THAT PROVIDES HOSPITAL, SURGICAL OR  MEDICAL  COVERAGE
FOR  OTHER  THAN SPECIFIC DISEASES OR ACCIDENTS ONLY, AND WHICH PROVIDES
DEPENDENT COVERAGE THAT TERMINATES  AT  A  SPECIFIED  AGE,  SHALL,  UPON
APPLICATION  OF THE EMPLOYEE, MEMBER OR DEPENDENT CHILD, AS SET FORTH IN
SUBPARAGRAPHS (B) OR (C) OF THIS  PARAGRAPH,  PROVIDE  COVERAGE  TO  THE
DEPENDENT  CHILD  AFTER  THAT  SPECIFIED AGE AND THROUGH AGE TWENTY-NINE
WITHOUT EVIDENCE OF INSURABILITY, SUBJECT TO ALL OF THE TERMS AND CONDI-
TIONS OF THE GROUP CONTRACT AND THE FOLLOWING:
  (A) AN EMPLOYER SHALL NOT BE REQUIRED TO PAY ALL OR PART OF  THE  COST
OF COVERAGE FOR A DEPENDENT CHILD PROVIDED PURSUANT TO THIS SUBSECTION;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD12007-02-9
              

A. 8401                             2

  (B) AN EMPLOYEE, MEMBER OR DEPENDENT CHILD WHO WISHES TO ELECT CONTIN-
UATION OF COVERAGE PURSUANT TO THIS SUBSECTION MAY REQUEST THE CONTINUA-
TION IN WRITING:
  (I)  WITHIN  SIXTY  DAYS  FOLLOWING  THE DATE COVERAGE WOULD OTHERWISE
TERMINATE DUE TO REACHING THE SPECIFIED  AGE  SET  FORTH  IN  THE  GROUP
CONTRACT;
  (II)  WITHIN  SIXTY  DAYS AFTER MEETING THE REQUIREMENTS FOR DEPENDENT
CHILD STATUS SET FORTH IN PARAGRAPH ONE OF THIS SUBSECTION WHEN COVERAGE
FOR THE DEPENDENT CHILD PREVIOUSLY TERMINATED; OR
  (III) DURING AN ANNUAL THIRTY-DAY OPEN ENROLLMENT PERIOD, AS DESCRIBED
IN THE CONTRACT;
  (C) FOR TWELVE  MONTHS  AFTER  THE  INITIAL  EFFECTIVE  DATE  OF  THIS
SUBSECTION, AN EMPLOYEE, MEMBER OR DEPENDENT CHILD MAY ELECT PROSPECTIVE
COVERAGE  UNDER  THIS  SUBSECTION  FOR  A DEPENDENT CHILD WHOSE COVERAGE
TERMINATED UNDER THE TERMS OF THE GROUP CONTRACT PRIOR  TO  THE  INITIAL
EFFECTIVE DATE OF THIS SUBSECTION;
  (D)  AN  EMPLOYEE,  MEMBER OR DEPENDENT CHILD ELECTING CONTINUATION AS
DESCRIBED IN THIS SUBSECTION MUST PAY TO  THE  GROUP  CONTRACTHOLDER  OR
EMPLOYER,  BUT  NOT  MORE FREQUENTLY THAN ON A MONTHLY BASIS IN ADVANCE,
THE AMOUNT OF THE REQUIRED PREMIUM PAYMENT  ON  THE  DUE  DATE  OF  EACH
PAYMENT.  THE  WRITTEN ELECTION OF CONTINUATION, TOGETHER WITH THE FIRST
PREMIUM PAYMENT REQUIRED TO ESTABLISH PREMIUM PAYMENT ON A MONTHLY BASIS
IN ADVANCE, MUST BE GIVEN TO THE GROUP CONTRACTHOLDER OR EMPLOYER WITHIN
THE TIME PERIODS SET FORTH IN SUBPARAGRAPHS (B) AND (C)  OF  THIS  PARA-
GRAPH.  ANY  PREMIUM RECEIVED WITHIN THE THIRTY-DAY PERIOD AFTER THE DUE
DATE SHALL BE CONSIDERED TIMELY;
  (E) FOR ANY DEPENDENT CHILD ELECTING COVERAGE WITHIN SIXTY DAYS OF THE
DATE THE DEPENDENT CHILD WOULD OTHERWISE LOSE COVERAGE DUE TO REACHING A
SPECIFIED AGE, THE EFFECTIVE DATE OF THE CONTINUATION COVERAGE SHALL  BE
THE  DATE  COVERAGE  WOULD  HAVE OTHERWISE TERMINATED. FOR ANY DEPENDENT
CHILD ELECTING TO RESUME COVERAGE DURING AN ANNUAL OPEN ENROLLMENT PERI-
OD OR DURING THE TWELVE-MONTH INITIAL OPEN ENROLLMENT  PERIOD  DESCRIBED
IN SUBPARAGRAPH (C) OF THIS PARAGRAPH, THE EFFECTIVE DATE OF THE CONTIN-
UATION COVERAGE SHALL BE PROSPECTIVE NO LATER THAN THIRTY DAYS AFTER THE
ELECTION AND PAYMENT OF FIRST PREMIUM;
  (F)  COVERAGE  FOR  A  DEPENDENT  CHILD PURSUANT THIS SUBSECTION SHALL
CONSIST OF COVERAGE THAT IS IDENTICAL TO THE COVERAGE  PROVIDED  TO  THE
EMPLOYEE  OR  MEMBER  PARENT. IF COVERAGE IS MODIFIED UNDER THE CONTRACT
FOR ANY GROUP OF SIMILARLY  SITUATED  EMPLOYEES  OR  MEMBERS,  THEN  THE
COVERAGE  SHALL  ALSO  BE  MODIFIED IN THE SAME MANNER FOR ANY DEPENDENT
CHILD;
  (G) COVERAGE SHALL TERMINATE ON THE FIRST TO OCCUR OF THE FOLLOWING:
  (I) THE DATE THE DEPENDENT CHILD NO LONGER MEETS THE  REQUIREMENTS  OF
PARAGRAPH ONE OF THIS SUBSECTION;
  (II)  THE  END  OF THE PERIOD FOR WHICH PREMIUM PAYMENTS WERE MADE, IF
THERE IS A FAILURE TO MAKE A REQUIRED PREMIUM PAYMENT WITHIN THE  PERIOD
OF GRACE DESCRIBED IN SUBPARAGRAPH (D) OF THIS PARAGRAPH; OR
  (III)  THE  DATE  ON  WHICH  THE  GROUP CONTRACT IS TERMINATED AND NOT
REPLACED BY COVERAGE UNDER ANOTHER GROUP CONTRACT;
  (H) THE INSURER SHALL PROVIDE WRITTEN NOTIFICATION OF THE CONTINUATION
PRIVILEGE DESCRIBED IN THIS SUBSECTION AND THE TIME PERIOD IN  WHICH  TO
REQUEST CONTINUATION TO THE EMPLOYEE OR MEMBER:
  (I) IN EACH CERTIFICATE OF COVERAGE;
  (II)  AT LEAST SIXTY DAYS PRIOR TO TERMINATION AT THE SPECIFIED AGE AS
PROVIDED IN THE CONTRACT;

A. 8401                             3

  (III) AT LEAST THIRTY DAYS BEFORE THE ANNUAL  OPEN  ENROLLMENT  PERIOD
PERMITTING  AN  EMPLOYEE,  MEMBER  OR  DEPENDENT CHILD TO MAKE A WRITTEN
ELECTION FOR COVERAGE PURSUANT TO SUBPARAGRAPH (B)  OF  THIS  PARAGRAPH;
AND
  (IV)  THIRTY  DAYS  OR  LESS  FROM  THE INITIAL EFFECTIVE DATE OF THIS
SUBSECTION, WITH RESPECT TO INFORMATION CONCERNING A  DEPENDENT  CHILD'S
OPPORTUNITY,  FOR  TWELVE  MONTHS  AFTER  THE  EFFECTIVE  DATE  OF  THIS
SUBSECTION, TO MAKE A  WRITTEN  ELECTION  TO  OBTAIN  COVERAGE  UNDER  A
CONTRACT PURSUANT TO SUBPARAGRAPH (C) OF THIS PARAGRAPH; AND
  (I)  NOTWITHSTANDING  THE  COMMUNITY  RATING REQUIREMENTS SET FORTH IN
SECTION THREE THOUSAND  TWO  HUNDRED  THIRTY-ONE  OF  THIS  ARTICLE  AND
SECTION FOUR THOUSAND THREE HUNDRED SEVENTEEN OF THIS CHAPTER, AN INSUR-
ER SHALL ESTABLISH A DISTINCT PREMIUM FOR CONTINUATION COVERAGE PROVIDED
PURSUANT  TO  THIS  SUBSECTION  THAT REFLECTS THE LOWER MORBIDITY OF THE
POPULATION ELIGIBLE FOR COVERAGE PURSUANT TO THIS SUBSECTION.
  (3) AN INSURER SHALL SUBMIT REPORTS,  INCLUDING  QUARTERLY  ENROLLMENT
REPORTS AND SUCH OTHER INFORMATION AS THE SUPERINTENDENT MAY REQUIRE, NO
LATER  THAN  THIRTY  DAYS FOLLOWING EACH CALENDAR QUARTER, IN A FORM AND
MANNER TO BE PRESCRIBED BY THE SUPERINTENDENT.
  S 2. Section 4304 of the insurance law is  amended  by  adding  a  new
subsection (m) to read as follows:
  (M)(1)  AS  USED IN THIS SUBSECTION, "DEPENDENT CHILD" MEANS AN UNMAR-
RIED CHILD THROUGH AGE TWENTY-NINE OF  AN  EMPLOYEE  OR  MEMBER  INSURED
UNDER  A  GROUP REMITTANCE CONTRACT, REGARDLESS OF FINANCIAL DEPENDENCE,
WHO IS NOT A NAMED INSURED UNDER  ANY  OTHER  GROUP  CONTRACT  OR  GROUP
REMITTANCE  CONTRACT  AND  WHO  IS NOT ELIGIBLE FOR COVERAGE UNDER TITLE
XVIII OF THE UNITED STATES SOCIAL SECURITY ACT (MEDICARE).
  (2) IN ADDITION TO THE CONVERSION PRIVILEGE AFFORDED BY SUBSECTION (E)
OF THIS SECTION AND THE CONTINUATION PRIVILEGE AFFORDED  BY  SUBSECTIONS
(E)  AND  (K)  OF  THIS  SECTION,  A HOSPITAL SERVICE, HEALTH SERVICE OR
MEDICAL EXPENSE CORPORATION  OR  HEALTH  MAINTENANCE  ORGANIZATION  THAT
PROVIDES COVERAGE FOR WHICH THE PREMIUMS ARE PAID BY THE REMITTING AGENT
OF  A GROUP THAT PROVIDES DEPENDENT COVERAGE THAT TERMINATES AT A SPECI-
FIED AGE SHALL, UPON APPLICATION OF THE EMPLOYEE,  MEMBER  OR  DEPENDENT
CHILD,  AS  SET  FORTH  IN  SUBPARAGRAPH  (B)  OR (C) OF THIS PARAGRAPH,
PROVIDE COVERAGE TO THE DEPENDENT CHILD AFTER  THAT  SPECIFIED  AGE  AND
THROUGH AGE TWENTY-NINE WITHOUT EVIDENCE OF INSURABILITY, SUBJECT TO ALL
OF  THE  TERMS  AND  CONDITIONS OF THE GROUP REMITTANCE CONTRACT AND THE
FOLLOWING:
  (A) AN EMPLOYER SHALL NOT BE REQUIRED TO PAY ALL OR PART OF  THE  COST
OF COVERAGE FOR A DEPENDENT CHILD PROVIDED PURSUANT TO THIS SUBSECTION;
  (B) AN EMPLOYEE, MEMBER OR DEPENDENT CHILD WHO WISHES TO ELECT CONTIN-
UATION OF COVERAGE PURSUANT TO THIS SUBSECTION MAY REQUEST THE CONTINUA-
TION IN WRITING:
  (I)  WITHIN  SIXTY  DAYS  FOLLOWING  THE DATE COVERAGE WOULD OTHERWISE
TERMINATE DUE TO REACHING THE SPECIFIED  AGE  SET  FORTH  IN  THE  GROUP
CONTRACT;
  (II)  WITHIN  SIXTY  DAYS AFTER MEETING THE REQUIREMENTS FOR DEPENDENT
CHILD STATUS SET FORTH IN PARAGRAPH ONE OF THIS SUBSECTION WHEN COVERAGE
FOR THE DEPENDENT CHILD PREVIOUSLY TERMINATED; OR
  (III) DURING AN ANNUAL THIRTY-DAY OPEN ENROLLMENT PERIOD AS  DESCRIBED
IN THE CONTRACT;
  (C)  FOR  TWELVE  MONTHS  AFTER  THE  INITIAL  EFFECTIVE  DATE OF THIS
SUBSECTION, AN EMPLOYEE, MEMBER OR DEPENDENT CHILD MAY ELECT PROSPECTIVE
CONTINUATION COVERAGE UNDER THIS SUBSECTION FOR A DEPENDENT CHILD  WHOSE

A. 8401                             4

COVERAGE  TERMINATED  UNDER  THE  TERMS OF THE GROUP REMITTANCE CONTRACT
PRIOR TO THE INITIAL EFFECTIVE DATE OF THIS SUBSECTION;
  (D)  AN  EMPLOYEE,  MEMBER OR DEPENDENT CHILD ELECTING CONTINUATION AS
DESCRIBED IN THIS SUBSECTION MUST PAY TO THE GROUP  REMITTING  AGENT  OR
EMPLOYER,  BUT  NOT  MORE FREQUENTLY THAN ON A MONTHLY BASIS IN ADVANCE,
THE AMOUNT OF THE REQUIRED PREMIUM PAYMENT  ON  THE  DUE  DATE  OF  EACH
PAYMENT.  THE  WRITTEN ELECTION OF CONTINUATION, TOGETHER WITH THE FIRST
PREMIUM PAYMENT REQUIRED TO ESTABLISH PREMIUM PAYMENT ON A MONTHLY BASIS
IN ADVANCE, MUST BE GIVEN TO THE GROUP REMITTING AGENT OR EMPLOYER WITH-
IN THE TIME PERIODS SET FORTH IN SUBPARAGRAPHS (B) AND (C) OF THIS PARA-
GRAPH. ANY PREMIUM RECEIVED WITHIN THE THIRTY-DAY PERIOD AFTER  THE  DUE
DATE SHALL BE CONSIDERED TIMELY;
  (E) FOR ANY DEPENDENT CHILD ELECTING COVERAGE WITHIN SIXTY DAYS OF THE
DATE THE DEPENDENT CHILD WOULD OTHERWISE LOSE COVERAGE DUE TO REACHING A
SPECIFIED  AGE, THE EFFECTIVE DATE OF THE CONTINUATION COVERAGE SHALL BE
THE DATE COVERAGE WOULD HAVE OTHERWISE  TERMINATED.  FOR  ANY  DEPENDENT
CHILD ELECTING TO RESUME COVERAGE DURING AN ANNUAL OPEN ENROLLMENT PERI-
OD  OR  DURING THE TWELVE-MONTH INITIAL OPEN ENROLLMENT PERIOD DESCRIBED
IN SUBPARAGRAPH (C) OF THIS PARAGRAPH, THE EFFECTIVE DATE OF THE CONTIN-
UATION COVERAGE SHALL BE PROSPECTIVE NO LATER THAN THIRTY DAYS AFTER THE
ELECTION AND PAYMENT OF FIRST PREMIUM;
  (F) COVERAGE FOR A DEPENDENT CHILD PURSUANT TO THIS  SUBSECTION  SHALL
CONSIST  OF  COVERAGE  THAT IS IDENTICAL TO THE COVERAGE PROVIDED TO THE
EMPLOYEE OR MEMBER PARENT. IF COVERAGE IS MODIFIED  UNDER  THE  CONTRACT
FOR  ANY  GROUP  OF  SIMILARLY  SITUATED  EMPLOYEES OR MEMBERS, THEN THE
COVERAGE SHALL ALSO BE MODIFIED IN THE SAME  MANNER  FOR  ANY  DEPENDENT
CHILD;
  (G) COVERAGE SHALL TERMINATE ON THE FIRST TO OCCUR OF THE FOLLOWING:
  (I)  THE  DATE THE DEPENDENT CHILD NO LONGER MEETS THE REQUIREMENTS OF
PARAGRAPH ONE OF THIS SUBSECTION;
  (II) THE END OF THE PERIOD FOR WHICH PREMIUM PAYMENTS  WERE  MADE,  IF
THERE  IS A FAILURE TO MAKE PAYMENT OF A REQUIRED PREMIUM PAYMENT WITHIN
THE PERIOD OF GRACE DESCRIBED IN SUBPARAGRAPH (D) OF THIS PARAGRAPH; OR
  (III) THE DATE ON WHICH THE GROUP REMITTANCE  CONTRACT  IS  TERMINATED
AND NOT REPLACED BY COVERAGE UNDER ANOTHER GROUP REMITTANCE CONTRACT.
  (H)  THE  CORPORATION OR HEALTH MAINTENANCE ORGANIZATION SHALL PROVIDE
WRITTEN NOTIFICATION OF THE CONTINUATION  PRIVILEGE  DESCRIBED  IN  THIS
SUBSECTION  AND  THE TIME PERIOD IN WHICH TO REQUEST CONTINUATION TO THE
EMPLOYEE OR MEMBER:
  (I) IN EACH CERTIFICATE OF COVERAGE;
  (II) AT LEAST SIXTY DAYS PRIOR TO TERMINATION AT THE SPECIFIED AGE  AS
PROVIDED IN THE CONTRACT;
  (III)  AT  LEAST  THIRTY DAYS BEFORE THE ANNUAL OPEN ENROLLMENT PERIOD
PERMITTING AN EMPLOYEE, MEMBER OR DEPENDENT  CHILD  TO  MAKE  A  WRITTEN
ELECTION  FOR  COVERAGE  PURSUANT TO SUBPARAGRAPH (B) OF THIS PARAGRAPH;
AND
  (IV) THIRTY DAYS OR LESS FROM  THE  INITIAL  EFFECTIVE  DATE  OF  THIS
SUBSECTION,  WITH  RESPECT TO INFORMATION CONCERNING A DEPENDENT CHILD'S
OPPORTUNITY,  FOR  TWELVE  MONTHS  AFTER  THE  EFFECTIVE  DATE  OF  THIS
SUBSECTION,  TO  MAKE  A  WRITTEN  ELECTION  TO  OBTAIN COVERAGE UNDER A
CONTRACT PURSUANT TO SUBPARAGRAPH (C) OF THIS PARAGRAPH; AND
  (I) NOTWITHSTANDING THE COMMUNITY RATING  REQUIREMENTS  SET  FORTH  IN
SECTION  THREE  THOUSAND  TWO  HUNDRED  THIRTY-ONE  OF  THIS CHAPTER AND
SECTION FOUR THOUSAND THREE HUNDRED SEVENTEEN OF THIS ARTICLE, A  CORPO-
RATION  OR  HEALTH  MAINTENANCE  ORGANIZATION SHALL ESTABLISH A DISTINCT
PREMIUM FOR CONTINUATION COVERAGE PROVIDED PURSUANT TO  THIS  SUBSECTION

A. 8401                             5

THAT  REFLECTS THE LOWER MORBIDITY OF THE POPULATION ELIGIBLE FOR COVER-
AGE PURSUANT TO THIS SUBSECTION.
  (3)  A  CORPORATION  OR  HEALTH  MAINTENANCE ORGANIZATION SHALL SUBMIT
REPORTS, INCLUDING QUARTERLY ENROLLMENT REPORTS AND SUCH OTHER  INFORMA-
TION  AS  THE  SUPERINTENDENT  MAY  REQUIRE,  NO  LATER THAN THIRTY DAYS
FOLLOWING EACH CALENDAR QUARTER, IN A FORM AND MANNER TO  BE  PRESCRIBED
BY THE SUPERINTENDENT.
  S  3.  Section  4305  of  the insurance law is amended by adding a new
subsection (l) to read as follows:
  (L)(1) AS USED IN THIS SUBSECTION, "DEPENDENT CHILD" MEANS  AN  UNMAR-
RIED  CHILD  THROUGH  AGE  TWENTY-NINE  OF AN EMPLOYEE OR MEMBER INSURED
UNDER A GROUP CONTRACT, REGARDLESS OF FINANCIAL DEPENDENCE, WHO IS NOT A
NAMED INSURED  UNDER  ANY  OTHER  GROUP  CONTRACT  OR  GROUP  REMITTANCE
CONTRACT  AND  WHO IS NOT ELIGIBLE FOR COVERAGE UNDER TITLE XVIII OF THE
UNITED STATES SOCIAL SECURITY ACT (MEDICARE).
  (2) IN ADDITION TO THE CONVERSION PRIVILEGE AFFORDED BY SUBSECTION (D)
OF THIS SECTION AND THE CONTINUATION PRIVILEGE  AFFORDED  BY  SUBSECTION
(E)  OF  THIS  SECTION,  A  HOSPITAL  SERVICE, HEALTH SERVICE OR MEDICAL
EXPENSE CORPORATION OR HEALTH  MAINTENANCE  ORGANIZATION  THAT  PROVIDES
GROUP  COVERAGE UNDER WHICH DEPENDENT COVERAGE TERMINATES AT A SPECIFIED
AGE SHALL, UPON APPLICATION OF THE EMPLOYEE, MEMBER OR DEPENDENT  CHILD,
AS  SET  FORTH  IN  SUBPARAGRAPH  (B)  OR (C) OF THIS PARAGRAPH, PROVIDE
COVERAGE TO THE DEPENDENT CHILD AFTER THAT SPECIFIED AGE AND THROUGH AGE
TWENTY-NINE WITHOUT EVIDENCE OF INSURABILITY,  SUBJECT  TO  ALL  OF  THE
TERMS AND CONDITIONS OF THE GROUP CONTRACT AND THE FOLLOWING:
  (A)  AN  EMPLOYER SHALL NOT BE REQUIRED TO PAY ALL OR PART OF THE COST
OF COVERAGE FOR A DEPENDENT CHILD PROVIDED PURSUANT TO THIS SUBSECTION;
  (B) AN EMPLOYEE, MEMBER OR DEPENDENT CHILD WHO WISHES TO ELECT CONTIN-
UATION OF COVERAGE PURSUANT TO THIS SUBSECTION MAY REQUEST THE CONTINUA-
TION IN WRITING:
  (I) WITHIN SIXTY DAYS FOLLOWING  THE  DATE  COVERAGE  WOULD  OTHERWISE
TERMINATE  DUE  TO  REACHING  THE  SPECIFIED  AGE SET FORTH IN THE GROUP
CONTRACT;
  (II) WITHIN SIXTY DAYS AFTER MEETING THE  REQUIREMENTS  FOR  DEPENDENT
CHILD STATUS SET FORTH IN PARAGRAPH ONE OF THIS SUBSECTION WHEN COVERAGE
FOR THE DEPENDENT CHILD PREVIOUSLY TERMINATED; OR
  (III) DURING AN ANNUAL THIRTY-DAY OPEN ENROLLMENT PERIOD, AS DESCRIBED
IN THE CONTRACT;
  (C)  FOR  TWELVE  MONTHS  AFTER  THE  INITIAL  EFFECTIVE  DATE OF THIS
SUBSECTION, AN EMPLOYEE, MEMBER OR DEPENDENT CHILD MAY ELECT PROSPECTIVE
CONTINUATION COVERAGE UNDER THIS SUBSECTION FOR A DEPENDENT CHILD  WHOSE
COVERAGE  TERMINATED  UNDER  THE TERMS OF THE GROUP CONTACT PRIOR TO THE
INITIAL EFFECTIVE DATE OF THIS SUBSECTION;
  (D) AN EMPLOYEE, MEMBER OR DEPENDENT CHILD  ELECTING  CONTINUATION  AS
DESCRIBED  IN  THIS  SUBSECTION  MUST PAY TO THE GROUP CONTRACTHOLDER OR
EMPLOYER, BUT NOT MORE FREQUENTLY THAN ON A MONTHLY  BASIS  IN  ADVANCE,
THE  AMOUNT  OF  THE  REQUIRED  PREMIUM  PAYMENT ON THE DUE DATE OF EACH
PAYMENT. THE WRITTEN ELECTION OF CONTINUATION, TOGETHER WITH  THE  FIRST
PREMIUM PAYMENT REQUIRED TO ESTABLISH PREMIUM PAYMENT ON A MONTHLY BASIS
IN ADVANCE, MUST BE GIVEN TO THE GROUP CONTRACTHOLDER OR EMPLOYER WITHIN
THE  TIME  PERIODS  SET FORTH IN SUBPARAGRAPHS (B) AND (C) OF THIS PARA-
GRAPH. ANY PREMIUM RECEIVED WITHIN THE THIRTY-DAY PERIOD AFTER  THE  DUE
DATE SHALL BE CONSIDERED TIMELY;
  (E) FOR ANY DEPENDENT CHILD ELECTING COVERAGE WITHIN SIXTY DAYS OF THE
DATE THE DEPENDENT CHILD WOULD OTHERWISE LOSE COVERAGE DUE TO REACHING A
SPECIFIED  AGE, THE EFFECTIVE DATE OF THE CONTINUATION COVERAGE SHALL BE

A. 8401                             6

THE DATE COVERAGE WOULD HAVE OTHERWISE  TERMINATED.  FOR  ANY  DEPENDENT
CHILD ELECTING TO RESUME COVERAGE DURING AN ANNUAL OPEN ENROLLMENT PERI-
OD  OR  DURING THE TWELVE-MONTH INITIAL OPEN ENROLLMENT PERIOD DESCRIBED
IN SUBPARAGRAPH (C) OF THIS PARAGRAPH, THE EFFECTIVE DATE OF THE CONTIN-
UATION COVERAGE SHALL BE PROSPECTIVE NO LATER THAN THIRTY DAYS AFTER THE
ELECTION AND PAYMENT OF FIRST PREMIUM;
  (F)  COVERAGE  FOR A DEPENDENT CHILD PURSUANT TO THIS SUBSECTION SHALL
CONSIST OF COVERAGE THAT IS IDENTICAL TO THE COVERAGE  PROVIDED  TO  THE
EMPLOYEE  OR  MEMBER  PARENT. IF COVERAGE IS MODIFIED UNDER THE CONTRACT
FOR ANY GROUP OF SIMILARLY  SITUATED  EMPLOYEES  OR  MEMBERS,  THEN  THE
COVERAGE  SHALL  ALSO  BE  MODIFIED IN THE SAME MANNER FOR ANY DEPENDENT
CHILD;
  (G) COVERAGE SHALL TERMINATE ON THE FIRST TO OCCUR OF THE FOLLOWING:
  (I) THE DATE THE DEPENDENT CHILD NO LONGER MEETS THE  REQUIREMENTS  OF
PARAGRAPH ONE OF THIS SUBSECTION;
  (II)  THE  END  OF THE PERIOD FOR WHICH PREMIUM PAYMENTS WERE MADE, IF
THERE IS A FAILURE TO MAKE PAYMENT OF A REQUIRED PREMIUM PAYMENT  WITHIN
THE PERIOD OF GRACE DESCRIBED IN SUBPARAGRAPH (D) OF THIS PARAGRAPH; OR
  (III)  THE  DATE  ON  WHICH  THE  GROUP CONTRACT IS TERMINATED AND NOT
REPLACED BY COVERAGE UNDER ANOTHER GROUP CONTRACT;
  (H) THE CORPORATION OR HEALTH MAINTENANCE ORGANIZATION  SHALL  PROVIDE
WRITTEN  NOTIFICATION  OF  THE  CONTINUATION PRIVILEGE DESCRIBED IN THIS
SUBSECTION AND THE TIME PERIOD IN WHICH TO REQUEST CONTINUATION  TO  THE
EMPLOYEE OR MEMBER:
  (I) IN EACH CERTIFICATE OF COVERAGE;
  (II)  AT LEAST SIXTY DAYS PRIOR TO TERMINATION AT THE SPECIFIED AGE AS
PROVIDED IN THE CONTRACT;
  (III) AT LEAST THIRTY DAYS BEFORE THE ANNUAL  OPEN  ENROLLMENT  PERIOD
PERMITTING  AN  EMPLOYEE,  MEMBER  OR  DEPENDENT CHILD TO MAKE A WRITTEN
ELECTION FOR COVERAGE PURSUANT TO SUBPARAGRAPH (B)  OF  THIS  PARAGRAPH;
AND
  (IV)  THIRTY  DAYS  OR  LESS  FROM  THE INITIAL EFFECTIVE DATE OF THIS
SUBSECTION, WITH RESPECT TO INFORMATION CONCERNING A  DEPENDENT  CHILD'S
OPPORTUNITY,  FOR  TWELVE  MONTHS  AFTER  THE  EFFECTIVE  DATE  OF  THIS
SUBSECTION, TO MAKE A  WRITTEN  ELECTION  TO  OBTAIN  COVERAGE  UNDER  A
CONTRACT PURSUANT TO SUBPARAGRAPH (C) OF THIS PARAGRAPH; AND
  (I)  NOTWITHSTANDING  THE  COMMUNITY  RATING REQUIREMENTS SET FORTH IN
SECTION THREE THOUSAND  TWO  HUNDRED  THIRTY-ONE  OF  THIS  CHAPTER  AND
SECTION  FOUR THOUSAND THREE HUNDRED SEVENTEEN OF THIS ARTICLE, A CORPO-
RATION OR HEALTH MAINTENANCE ORGANIZATION  SHALL  ESTABLISH  A  DISTINCT
PREMIUM  FOR  CONTINUATION COVERAGE PROVIDED PURSUANT TO THIS SUBSECTION
THAT REFLECTS THE LOWER MORBIDITY OF THE POPULATION ELIGIBLE FOR  COVER-
AGE PURSUANT TO THIS SUBSECTION.
  (3)  A  CORPORATION  OR  HEALTH  MAINTENANCE ORGANIZATION SHALL SUBMIT
REPORTS, INCLUDING QUARTERLY ENROLLMENT REPORTS AND SUCH OTHER  INFORMA-
TION  AS  THE  SUPERINTENDENT  MAY  REQUIRE,  NO  LATER THAN THIRTY DAYS
FOLLOWING EACH CALENDAR QUARTER, IN A FORM AND MANNER TO  BE  PRESCRIBED
BY THE SUPERINTENDENT.
  S  4.  This  act  shall  take  effect  July 1, 2009 and shall apply to
contracts issued, renewed, modified, altered or amended on or after such
date.