Section 500.3712 - Decision to discontinue plan in geographic area.
THE INSURANCE CODE OF 1956 (EXCERPT)
Act 218 of 1956
500.3712 Decision to discontinue plan in geographic area.
Sec. 3712.
(1) If a small employer carrier decides to discontinue offering all small employer health benefit plans in a geographic area, all of the following apply:
(a) The small employer carrier shall provide notice to the commissioner and to each small employer covered by the small employer carrier in the geographic area of the discontinuation at least 180 days prior to the date of the discontinuation of the coverage.
(b) All small employer health benefit plans issued or delivered for issuance in the geographic area are discontinued and all current health benefit plans in the geographic area are not renewed.
(c) The small employer carrier shall not issue or deliver for issuance any small employer health benefit plans in the geographic area for 5 years beginning on the date the last small employer health benefit plan in the geographic area is not renewed under subdivision (b).
(d) The small employer carrier shall not issue or deliver for issuance for 5 years any small employer health benefit plans in an area that was not a geographic area where the small employer carrier was issuing or delivering for issuance small employer health benefit plans on the date notice was given under subdivision (a). The 5-year period under this subdivision begins on the date notice was given under subdivision (a).
(2) A nonprofit health care corporation shall not cease to renew all health benefit plans in a geographic area.
History: Add. 2003, Act 88, Eff. Jan. 23, 2004
Compiler's Notes: Former MCL 500.3712, which pertained to articles, policies, applications, and certificates on evidence of insurance coverage, was repealed by Act 271 of 2001, Imd. Eff. Jan. 11, 2002.
Popular Name: Act 218