§ 4080 -   Required policy provisions

§ 4080. Required policy provisions

No such policy shall contain any provision relative to notice of claim, proofs of loss, time of payment of claims, or time within which legal action must be brought upon the policy which, in the opinion of the commissioner, is less favorable to the persons insured than would be permitted by the provisions set forth in section 4065 of this title. In addition each such policy shall contain in substance the following provisions:

(1) A provision that the policy, the application of the policyholder, if such application or copy thereof is attached to such policy, and the individual applications, if any, submitted in connection with such policy by the employees or members, shall constitute the entire contract between the parties, and that all statements, in the absence of fraud, made by any applicant or applicants shall be deemed representations and not warranties, and that no such statement shall avoid the insurance or reduce benefits thereunder unless contained in a written application of which a copy is attached to the policy.

(2) A provision that the insurer will furnish to the policyholder, for delivery to each employee or member of the insured group, an individual certificate setting forth in summary form a statement of the essential features of the insurance coverage of such employee or member and to whom benefits thereunder are payable. If dependents are included in the coverage, only one certificate need be issued for each family unit.

(3) A provision that to the group originally insured may be added from time to time eligible new employees or members or dependents, as the case may be, in accordance with the terms of the policy.

(4) In the case of an approved employer-sponsored plan under section 1974 of Title 33, a provision that defines as a qualifying event a finding by the agency of human services that an eligible employee, member, or dependent qualifies for premium assistance or is required to participate in the group in accordance with the provisions of section 1974 of Title 33 (employer-sponsored insurance; premium assistance), and that entitles the employee, member, or dependent to a special enrollment period of 30 days from the date of notice of the agency finding.

(5) A provision that the insurer shall not exclude part-time employees and shall offer the same group health benefits to part-time employees as it offers to the employee groups of which the part-time employees would be members if they were full-time employees. The insurer shall offer to include the part-time employees as part of the employer's employee group, at the full rate to be paid by the employer and the employee, at a rate prorated between the employer and the employee or at the employee's expense. "Part-time employee" means any employee who works a minimum of at least 17 1/2 hours per week. (Amended 1989, No. 34, § 1; 2007, No. 70, § 20.)