02RS HB510


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HB 510 (BR 1940) - D. Ford, K. Upchurch

     AN ACT relating to cancellation of health insurance policies and contracts.
     Create new sections of Subtitles 17, 18, and 38 to require forty-five (45) days' notice of cancellation of health insurance; provide that no notice is required if cancellation is for nonpayment of premium, intentional misrepresentation of material fact, fraud, or intentional and abusive noncompliance with material provisions of the policy; require a prompt refund of the unearned portion of the premium in the event of cancellation; provide that if the forty-five (45) days' notice, is not given the policy shall remain effective until forty-five (45) days after the notice is given; provide that in case of group coverage the policyholder or contract holder must mail to each person covered under the group coverage a copy of the notice of cancellation; amend KRS 304.17A-245 to conform.


     HCS - Amend KRS 304.17A-245 to require thirty (30) days advance written notice for cancellation of health benefit plans; require insurer to give thirty (30) days notice of cancellation if insured fails to pay premium; provide that if a group policy is canceled the insurer must notify each member of the right to conversion within fifteen (15) days after the grace period; require group contracts to have an automatic termination provision if the premium amounts are not received by the end of the grace period; provide that in case of failure to pay the premium, all group contracts must include an insurer's reinstatement policy; prohibit an insurer from denying a contract holder or policyholder reinstatement based on a health-related factor in KRS 304.17A-200 or consideration of medical loss ratio; create a new section of Subtitle 17A of KRS Chapter 304 to provide that if the premium is not paid by the due date, an insurer must allow a thirty (30) day grace period for which payments must be made prior to termination; amend KRS 304.18-125 to conform; and amend KRS 304.17A-240 to restrict reasons for cancellation of a health benefit plan.

     HCA (1/Title, D. Ford) - Make title amendment.

     Jan 28-introduced in House
     Jan 29-to Banking and Insurance (H)
     Feb 1-posted in committee
     Feb 27-reported favorably, 1st reading, to Calendar with Committee Substitute, committee amendment (1-title)
     Feb 28-2nd reading, to Rules
     Mar 7-posted for passage in the Regular Orders of the Day for Friday, March 8, 2002
     Mar 8-3rd reading, passed 93-0 with Committee Substitute, committee amendment (1-title)
     Mar 11-received in Senate
     Mar 14-to Banking and Insurance (S)
     Mar 21-reported favorably, 1st reading, to Consent Calendar
     Mar 22-2nd reading, to Rules
     Mar 29-posted for passage in the Consent Orders of the Day for Friday, March 29, 2002; 3rd reading, passed 38-0
     Apr 1-received in House; enrolled, signed by each presiding officer; delivered to Governor
     Apr 8-signed by Governor (Acts ch. 249)

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