(a)    (1)    In this section the following words have the meanings indicated.

(2)    “Act” means the federal American Recovery and Reinvestment Act of 2009 (P.L. 111–5).

(3)    “Carrier” means:

(i)    an insurer;

(ii)    a nonprofit health service plan; or

(iii)    a health maintenance organization.

(4)    “Small employer” has the meaning stated in § 15–1201 of this title.

(b)    This section applies to a carrier that issues health benefit plans to small employers in accordance with Subtitle 12 of this title.

(c)    A carrier shall allow an extended election period for continuation coverage under § 15–409 of this subtitle if the individual:

(1)    was involuntarily terminated from employment by a small employer between September 1, 2008, and February 16, 2009, inclusive, as described in § 3001(a)(3)(C) of the Act;

(2)    is an assistance eligible individual, as defined in § 3001(a)(3) of the Act, or would be an assistance eligible individual if an election of continuation coverage under § 15–409 of this subtitle was in effect on the date of enactment of the Act; and

(3)    was eligible for continuation coverage under § 15–409 of this subtitle at the time of the individual’s termination of employment.

(d)    The extended election period provided under this section shall continue until 60 days after provision of the notification required by § 3001(a)(7)(C) of the Act if the notification describes the extended election period required under this section.

(e)    Any continuation coverage elected by an individual during an extended election period under this section:

(1)    shall begin during the first period of coverage beginning on or after the individual’s election of continuation coverage; and

(2)    may not extend beyond the period of continuation coverage that would have been required under § 15–409 of this subtitle if the coverage had been elected as required under that section.