Uniform Termination of Coverage

Section 2025.60  Uniform Termination of Coverage When a health insurance issuer decides to discontinue offering a particular type of health insurance coverage, the health insurance issuer must adhere to the following requirements: a)         The health insurance issuer may only discontinue a particular type of health insurance coverage upon the renewal date of the coverage.  The statutory 90 day notice given to plan sponsors, participants, beneficiaries and covered individuals must be 90 days prior to the renewal date of the health insurance coverage. b)         The notice of discontinuance of coverage must be sent to all the following:  the plan sponsor, participant and beneficiaries, or, if the coverage is an individual policy, the covered individual. c)         The health insurance issuer must offer to be purchased all products being marketed in that market.  The health insurance issuer may not limit which products are to be offered for purchase. d)         The health insurance issuer discontinuing the coverage must be the same company required to offer other health insurance coverage in the market to the plan sponsor or covered individual.  It may not be an affiliated company unless approved by the Director.