§ 15-1409. Nonrenewal of plans

   (a) Election to nonrenew particular coverage. -- A carrier that elects not to renew all of a particular type of coverage or policy form in the State shall:

   (1) provide notice of the nonrenewal at least 90 days before the date of the nonrenewal to each affected:

      (i) policyholder;

      (ii) plan sponsor;

      (iii) participant; and

      (iv) beneficiary;

   (2) offer to each affected plan sponsor the option to purchase any other health insurance coverage currently being offered by the carrier; and

   (3) act uniformly without regard to the claims experience of any affected plan sponsor, or any health status-related factor of any affected individual.

(b) Election to nonrenew all plans. -- A carrier may elect not to renew all group health benefit plans in the State.

(c) Effect of election to nonrenew all plans. -- When a carrier elects not to renew all group health benefit plans in the State, the carrier:

   (1) shall give notice of its decision to the affected individuals at least 180 days before the effective date of nonrenewal;

   (2) at least 30 working days before that notice, shall give notice to the Commissioner; and

   (3) may not write new business for groups in the State for a 5-year period beginning on the date of notice to the Commissioner.

(d) Approved service areas. -- A health maintenance organization need not offer coverage to an individual who does not live, reside, or work within the health maintenance organization's approved service areas.

HISTORY: An. Code 1957, art. 48A, § 772; 1997, ch. 294, § 3.