| (a) An insurer or group hospital service corporation
must offer to any employee, member, or dependent whose insurance under
a group policy has been terminated for any reason (except involuntary
termination for cause), including discontinuance of the group policy
in its entirety or with respect to any insured class, and who has
been continuously insured under the group policy (and under any policy
providing similar benefits that it replaces) for at least three consecutive
months immediately prior to termination:
(1) a conversion policy providing the same coverage
and benefits as provided under the group policy or plan, for an insurance
policy or evidence of coverage that was delivered, issued for delivery,
or renewed prior to June 1, 1996;
(2) a conversion policy providing similar coverage
and benefits as provided under the group policy or plan, for an insurance
policy or evidence of coverage that was delivered, issued for delivery,
or renewed on or after June 1, 1996, and before July 1, 1997.
(b) An insurer or group hospital service corporation
may offer a conversion policy for an insurance policy that is delivered,
issued for delivery, or renewed on or after July 1, 1997.
(c) If an insurer or group hospital service corporation
offers a conversion policy under subsection (a) or (b) of this section,
the insurer or group hospital service corporation must issue a conversion
policy without evidence of insurability if a written application for
the policy and payment of the first premium are made not later than
the 31st day after the date of termination.
(d) An insurer or group hospital service corporation
may provide the conversion coverage on an individual or group basis
as authorized under Insurance Code §1251.256.
(e) Under Insurance Code §1271.306, an HMO may
offer to each enrollee a conversion contract.
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