An Act To Clarify the Right To Name a 3rd Party To Receive Notification of Policy Cancellation

Sec. 1. 24-A MRSA §2707-A,  as amended by PL 2011, c. 123, §2 and affected by §5, is further amended by adding after the 2nd paragraph a new paragraph to read:

When an insured pays the premium for a policy through a payroll deduction plan, any requirement that the insured has a right to designate at least one other person to receive notice of lapse or termination of the policy may be deferred until 60 days after the insured is no longer on the payroll plan.

Sec. 2. 24-A MRSA §2847-C,  as amended by PL 2011, c. 123, §3 and affected by §5, is further amended by adding after the 2nd paragraph a new paragraph to read:

When a policyholder or certificate holder pays the premium for a policy or certificate through a payroll plan, any requirement that the insured has a right to designate at least one other person to receive notice of lapse or termination of a group accident or health insurance policy or certificate may be deferred until 60 days after the certificate holder is no longer on the payroll plan.

Sec. 3. Rules. The Superintendent of Insurance shall adopt routine technical rules as defined in the Maine Revised Statutes, Title 5, chapter 375, subchapter 2-A to implement those sections of this Act that amend Title 24-A, sections 2707-A and 2847-C.

summary

This bill adds provisions to the Maine Insurance Code to allow an insured person who had been paying for health insurance through a payroll plan a period of 60 days after the insured person is no longer on the payroll plan to designate at least one other person to receive notice of lapse or termination of the policy.