Page:United States Statutes at Large Volume 104 Part 2.djvu/537

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PUBLIC LAW 101-508—NOV. 5, 1990 104 STAT. 1388-129 SEC. 4352. GUARANTEED RENEWABILITY. Section 1882 is amended by adding at the end the following new 42 USC 13958s. subsection: "(q) The requirements of this subsection are as follows: "(1) Each medicare supplemental policy shall be guaranteed renewable and— "(A) the issuer may not cancel or nonrenew the policy solely on the ground of health status of the individual; and "(B) the issuer shall not cancel or nonrenew the policy for any reason other than nonpayment of premium or material misrepresentation. "(2) If the medicare supplemental policy is terminated by the group policyholder and is not replaced as provided under paragraph (2), the issuer shall offer certificateholders an individual medicare supplemental policy which (at the option of the certificateholder)— "(A) provides for continuation of the benefits contained in the group policy, or "(B) provides for such benefits as otherwise meets the requirements of this section. "(3) If an individual is a certificateholder in a group medicare supplemental policy and the individual terminates membership in the group, the issuer shall— "(A) offer the certificateholder the conversion opportunity described in paragraph (2), or "(B) at the option of the group policyholder, offer the certificateholder continuation of coverage under the group policy. "(4) If a group medicare supplemental policy is replaced by another group medicare supplemental policy purchased by the same policyholder, the succeeding issuer shall offer coverage to all persons covered under the old group policy on its date of termination. Coverage under the new group policy shall not result in any exclusion for preexisting conditions that would have been covered under the group policy being replaced.". SEC. 4353. ENFORCEMENT OF STANDARDS. (a) REQUIRING CONFORMITY WITH STANDARDS. — Section 1882 is amended— (1) in the heading, by striking "VOLUNTARY"; and (2) in subsection (a)— (A) by inserting "(1)" after "(a)", (B) by adding at the end the following new paragraph: "(2) No medicare supplemental policy may be issued in a State on or after the date specified in subsection (p)(l)(C) unless— "(A) the State's regulatory program under subsection (b)(1) provides for the application and enforcement of the standards and requirements set forth in such subsection (including the NAIC standards or the Federal standards (as the case may be)) by the date specified'in subsection (p)(l)(C); or "(B) if the State's program does not provide for the application and enforcement of such standards and requirements, the policy has been certified by the Secretary under paragraph (1) as meeting the standards and requirements set forth in subsection (c) (including such applicable standards) by such date. Any person who issues a medicare supplemental policy, after the effective date of the NAIC or Federal standards with respect to the