H.F. 239 Section 1. Section 509B.5, subsection 2, Code 2013, is 1 amended to read as follows: 2 2. If an employer or group policyholder terminates or 3 substantially modifies an agreement to provide accident or 4 health insurance for employees or members or if accident 5 or health insurance for employees or members is terminated 6 for failure to pay premiums or for another reason, the 7 employer or group policyholder shall notify the employees or 8 members, including persons being continued under the policy’s 9 continuation provisions, of the termination or substantial 10 modification of their coverage. The notice shall be in writing 11 and delivered in person to the entitled persons or mailed to 12 their last known addresses at least ten thirty days prior to 13 the termination or substantial modification of the accident or 14 health insurance coverage. The employer or group policyholder 15 is solely liable for benefits, including extended benefits, 16 other than extended benefits for which the insurer is liable 17 in accordance with the provisions of the group policy, which 18 would have been payable had the accident or health insurance 19 remained in force or not been terminated or substantially 20 modified during the period of time following the termination or 21 substantial modification until the person entitled to notice is 22 given notice by the employer or group policyholder as required 23 by this subsection . 24 EXPLANATION 25 This bill provides that when an agreement to provide 26 accident or health insurance for employees or members 27 is terminated or substantially modified, the employer or 28 group policyholder must provide written notification of the 29 termination or modification to the employees or members at 30 least 30, instead of 10, days before the change occurs. 31 -1- LSB 2213HH (1) 85 av/nh 1/ 1