2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 509B - CONTINUATION OF GROUP HEALTH INSURANCE
509B.5 - NOTICE OF TERMINATION OF MEMBERSHIP OR MODIFICATION OF COVERAGE.

        509B.5  NOTICE OF TERMINATION OF MEMBERSHIP OR
      MODIFICATION OF COVERAGE.
         1.  Employers or group policyholders shall notify all employees or
      members of their continuation rights within ten days of termination
      of employment or membership.  The notice shall be in writing and
      delivered in person or mailed to the person's last known address.
      However, continuation rights shall not be denied because of failure
      to provide proper notice.  After receiving proper notice the employee
      or member may request and shall receive continuation coverage in
      accordance with this chapter within ten days of the request,
      notwithstanding any other time limitation provided by this chapter.
      Notification as provided in this section supersedes section 515.125
      as that section relates to accident and health insurance.
         2.  If an employer or group policyholder terminates or
      substantially modifies an agreement to provide accident or health
      insurance for employees or members or if accident or health insurance
      for employees or members is terminated for failure to pay premiums or
      for another reason, the employer or group policyholder shall notify
      the employees or members, including persons being continued under the
      policy's continuation provisions, of the termination or substantial
      modification of their coverage.  The notice shall be in writing and
      delivered in person to the entitled persons or mailed to their last
      known addresses at least ten days prior to the termination or
      substantial modification of the accident or health insurance
      coverage.  The employer or group policyholder is solely liable for
      benefits, including extended benefits, other than extended benefits
      for which the insurer is liable in accordance with the provisions of
      the group policy, which would have been payable had the accident or
      health insurance remained in force or not been terminated or
      substantially modified during the period of time following the
      termination or substantial modification until the person entitled to
      notice is given notice by the employer or group policyholder as
      required by this subsection.
         3.  The employer or group policyholder is also solely liable for
      benefits, including extended benefits, which would have been payable
      had the accident or health insurance been in force and the employees
      or members been covered during the period of time the employer or
      group policyholder failed to implement the plan for accident or
      health insurance which the employer or group policyholder had agreed
      to provide, until the employer or group policyholder gives notice of
      its failure or inability to provide the agreed plan.  The notice
      shall be in writing and delivered in person to the employees or
      members or mailed to their last known addresses.
         4.  The employer or group policyholder is also solely liable for
      benefits, including extended benefits, which would have been payable
      had the accident or health insurance been in force and the employees
      or members been covered by the accident or health insurance during a
      period of time for which the employer or group policyholder has
      collected contributions through payroll, withholding, or otherwise,
      but has failed to enroll the employees or members, unless the
      employer or group policyholder has given actual notice that
      enrollment in the plan will not become effective until a later date
      or until the employee's or member's application for enrollment has
      been approved.  

         86 Acts, ch 1124, § 5; 2006 Acts, ch 1117, §37; 2007 Acts, ch 152,
      §55
         Referred to in § 509B.3, 514B.17