§ 27-221
381 words·~2 min read·
/md/insurance/27-221A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§27–221.
(1)In this section the following words have the meanings indicated.
(2)“Carrier” means a person that is:
(i)an insurer that holds a certificate of authority in the State and provides health insurance in the State;
(ii)a health maintenance organization that holds a certificate of authority to operate in the State; or
(iii)a nonprofit health service plan that holds a certificate of authority to operate in the State.
(3)“Health coverage” means any of the following:
(i)a health insurance contract that is issued or delivered in the State by an insurer;
(ii)a contract that is issued or delivered in the State by a nonprofit health service plan; or
(iii)a contract that is issued or delivered in the State by a health maintenance organization.
(4)“Health status-related factor” has the meaning stated in § 15-1301 of this article.
(5)“Individual contract” means a contract between a carrier and an individual covering:
(i)the individual;
(ii)the individual and the individual’s family members; or
(iii)the family members of the individual.
(i)“Reunderwrite” means to reevaluate any health status-related factor, occupation, hobby, or activity of an individual for the purpose of:
1. terminating health coverage of the individual; or
2. moving the individual from a more favorable rate class to a less favorable rate class.
(ii)“Reunderwrite” does not include:
1. moving an individual from one rate tier to another rate tier solely due to the addition or deletion of a family member under the health coverage;
2. increasing the premium under an attained age rated contract solely due to the increasing age of the individual covered under the health coverage;
3. on receipt of an application from an insured to increase the benefits under an existing contract, evaluating the health status-related factors, occupation, hobbies, or activities of the insured for the purpose of increasing the benefits under the contract; or
4. during the period in which a carrier has the right to contest a policy, denying a claim, amending the policy, making an adjustment to the premium, or rescinding the policy based on a material misrepresentation or fraud in the application.
(b)A carrier may not reunderwrite an individual for health coverage under an individual contract after the individual contract has been issued.