§ 4091d. Notice of termination

(a) A notice of termination of a carrier's group health insurance policy or subscriber contract shall:

(1) request the group policyholder or other entity involved to notify employees or members covered under the policy or subscriber contract of the date of termination of the policy or contract and to advise the employees or members that, unless otherwise provided in the policy or contract, the carrier shall not be liable for claims for losses incurred after such date;

(2) advise, in any instance in which the plan involves employee contributions, that if the policyholder or other entity continues to collect contributions for the coverage beyond the date of termination, the policyholder or other entity may be held solely liable for the benefits with respect to which the contributions have been collected.

(b) The carrier giving notice of termination shall prepare and furnish to the policyholder or other entity at the time of notice a supply of a notice form to be distributed to covered employees or members. The form shall state the fact of termination and the effective date of termination. The form shall contain a statement directing employees or members to refer to their certificates or contracts in order to determine their rights.

(c) The provisions of this section shall not be construed to relieve any nonprofit medical or hospital service corporation of its obligation to notify subscribers directly of a termination under this subchapter. (Added 1989, No. 113, § 2.)