HAR §12-12-28. Cancellation of contract

(a) No health care contractor shall cancel a contract providing in whole or in part for health care benefits required by the statute prior to the expiration date of the contract unless written notice of intention to cancel on a specified date and reason therefor has been filed with and served on the employer and the director at least ten days prior to the specified cancellation date. (b) The ten days' advance notice requirement in subsection (a) need not be complied with when a new contractor is simultaneously substituted. In the event of substitution, the previous contractor shall immediately file with and serve on the employer and the director, notice that the contract was canceled, the specific date and the reason for cancellation. (c) If a plan provides by its terms for an expiration date, acceptance of the plan by the director is notice thereof. (d) The employer shall notify its covered employees of the cancellation of coverage for nonpayment of premium. The employees shall be given an option of individual coverage if premium payment is made within ten days directly to the contractor. [ Eff: 5/7/81] (Auth: HRS §393-32) (Imp: HRS §§393-7, 393-12, 393-13)