§ 27-50-6. Renewability of coverage.
(a) A health benefit plan subject to this chapter is renewable with respect to all eligible
employees or dependents, at the option of the small employer, except in any of the
following cases:
(1) The plan sponsor has failed to pay premiums or contributions in accordance with the
terms of the health benefit plan or the carrier has not received timely premium payments;
(2) The plan sponsor or, with respect to coverage of individual insureds under the health
benefit plan, the insured or the insured's representative has performed an act or
practice that constitutes fraud or made an intentional misrepresentation of material
fact under the terms of coverage;
(3) Noncompliance with the carrier's minimum participation requirements;
(4) Noncompliance with the carrier's employer contribution requirements;
(5) The small employer carrier elects to discontinue offering all of its health benefit
plans delivered or issued for delivery to small employers in this state if the carrier:
(i) Provides advance notice of its decision under this subsection (a)(5) to the commissioner
in each state in which it is licensed; and
(ii) Provides notice of the decision to:
(A) All affected small employers and enrollees and their dependents; and
(B) The insurance commissioner in each state in which an affected insured individual is
known to reside at least one hundred and eighty (180) days prior to the nonrenewal
of any health benefit plans by the carrier, provided the notice to the commissioner
under this subsection (a)(5)(ii) is sent at least three (3) working days prior to
the date the notice is sent to the affected small employers and enrollees and their
dependents;
(6) The director:
(i) Finds that the continuation of the coverage would not be in the best interests of
the policyholders or certificate holders or would impair the carrier's ability to
meet its contractual obligations; and
(ii) Assists affected small employers in finding replacement coverage;
(7) The small employer carrier decides to discontinue offering a particular type of health
benefit plan in the state's small employer market if the carrier:
(i) Provides notice of the decision not to renew coverage at least ninety (90) days prior
to the nonrenewal of any health benefit plans to all affected small employers and
enrollees and their dependents;
(ii) Offers to each small employer issued a particular type of health benefit plan the
option to purchase all other health benefit plans currently being offered by the carrier
to small employers in the state; and
(iii) In exercising this option to discontinue a particular type of health benefit plan
and in offering the option of coverage pursuant to subsection (a)(7)(ii) of this section
acts uniformly without regard to the claims experience of those small employers or
any health status-related factor relating to any enrollee or dependent of an enrollee
or enrollees and their dependents covered or new enrollees and their dependents who
may become eligible for coverage;
(8) In the case of health benefit plans that are made available in the small group market
through a network plan, there is no longer an employee of the small employer living,
working, or residing within the carrier's established geographic service area and
the carrier would deny enrollment in the plan pursuant to § 27-50-7(e)(1)(ii); or
(9) In the case of a health benefit plan that is made available in the small employer
market only through one or more bona fide associations, the membership of an employer
in the bona fide association, on the basis of which the coverage is provided, ceases,
but only if the coverage is terminated under this subsection (a)(9) uniformly without
regard to any health status-related factor relating to any covered individual.
(b)(1) A small employer carrier that elects not to renew health benefit plan coverage pursuant
to subsection (a)(2) of this section because of the small employer's fraud or intentional
misrepresentation of material fact under the terms of coverage may choose not to issue
a health benefit plan to that small employer for one year after the date of nonrenewal.
(2) This subsection (b) shall not be construed to affect the requirements of § 27-50-7 as to the obligations of other small employer carriers to issue any health benefit
plan to the small employer.
(c)(1) A small employer carrier that elects to discontinue offering health benefit plans
under subsection (a)(5) of this section is prohibited from writing new business in
the small employer market in this state for a period of five (5) years beginning on
the date the carrier ceased offering new coverage in this state.
(2) In the case of a small employer carrier that ceases offering new coverage in this
state pursuant to subsection (a)(5) of this section, the small employer carrier, as
determined by the director, may renew its existing business in the small employer
market in the state or may be required to nonrenew all of its existing business in
the small employer market in the state.
(d) A small employer carrier offering coverage through a network plan is not required
to offer coverage or accept applications pursuant to subsection (a) or (b) of this
section in the case of the following:
(1) To an eligible person who no longer resides, lives, or works in the service area,
or in an area for which the carrier is authorized to do business, but only if coverage
is terminated under this subsection (d)(1) uniformly without regard to any health
status-related factor of covered individuals; or
(2) To a small employer that no longer has any enrollee in connection with the plan who
lives, resides, or works in the service area of the carrier, or the area for which
the carrier is authorized to do business.
(e) At the time of coverage renewal, a small employer carrier may modify the health insurance
coverage for a product offered to a group health plan if, for coverage that is available
in the small group market other than only through one or more bona fide associations,
such modification is consistent with otherwise applicable law and effective on a uniform
basis among group health plans with that product.