38.2-3416 - Conversion on termination of eligibility; insurer required to offer conversion policy or group coverage.
§ 38.2-3416. Conversion on termination of eligibility; insurer required tooffer conversion policy or group coverage.
A. Before an insurer who delivers or issues for delivery in this Commonwealthor who renews, reissues or extends if already issued, any group hospital,medical and surgical or group major medical policy, the insurer shall berequired to be able to offer without evidence of insurability to residents ofthis Commonwealth who are covered under the policy, whose eligibility mayterminate under the policy, and who may elect Option 1 under § 38.2-3541 anongroup policy of accident and sickness insurance, either individual orfamily, whichever is appropriate, pursuant to the provisions of § 38.2-3541unless such termination is due to termination of the group policy undercircumstances in which the insured person is insurable under otherreplacement group coverage or health care plan without waiting periods orpreexisting conditions under the replacement coverage or plan.
B. Any insurer who has in effect prior to January 1, 1985, any group policydescribed in subsection A of this section, may be exempted from theprovisions of subsection A of this section. However, for persons affected bythe termination of eligibility, the insurer shall be required to continuecoverage under the existing group policy, without evidence of insurabilityand at the insurer's current rate applicable to the group policy, for as longas the affected persons elect or as long as the insurer is not required tooffer an acceptable conversion policy.
(1984, c. 300, § 38.1-348.10:1; 1986, c. 562; 1988, c. 551.)