Section 376.436

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS

Chapter 376

Effective - 28 Aug 1999   

  376.436.  Discontinuance notice by carrier, contents — notice forms furnished by carrier for distribution to policyholders. — 1.  Any notice of discontinuance so given by the carrier shall include a request to the group policyholder or other entity involved to notify employees covered under the policy or contract of the date as of which the group policy or contract will discontinue and to advise that unless otherwise provided in the policy or contract, the carrier shall not be liable for claims for losses incurred after such date.  Such notice of discontinuance shall also 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 discontinuance, the policyholder or other entity may be held solely liable for the benefits with respect to which the contributions have been collected.

  2.  The carrier will prepare and furnish to the policyholder or other entity at the same time a supply of a notice form to be distributed to the employees or members concerned indicating such discontinuance and the effective date thereof, and urging the employees or members to refer to their certificates or contracts in order to determine what rights, if any, are available to them upon such discontinuance.

­­--------

(L. 1985 H.B. 623, A.L. 1999 H.B. 903)