Unfair discrimination in group health insurance coverage transfers

Group coverage of accident and health insurance benefits transferred from one carrier to another must guaranty transfer of coverage for all eligible persons covered under the existing group insurance program and the transfer of such coverage must be negotiated on the basis of all eligible persons being covered under the group insurance program of the new carrier, irrespective of the current state of health of such persons, provided all such persons are currently covered under the present carrier's group insurance program. Violation of this section by an insurance company or agent constitutes unfair discrimination and is a prohibited practice as defined in subsection 7 of North Dakota Century Code section 26.1-04-03.