2006 New Mexico Statutes - Section 59A-56-20 — Renewability.

59A-56-20. Renewability.

A.     An approved health plan shall contain provisions under which the member offering the plan is obligated to renew the health insurance if premiums are paid until the day the plan is replaced by another plan or the small employer terminates coverage.   

B.     An approved health plan issued to an eligible individual shall contain provisions under which the member offering the plan is obligated to renew the health insurance except for:   

(1)     nonpayment of premium;   

(2)     fraud; or   

(3)     termination of the approved health plan, except that the individual has the right to transfer to another approved health plan.   

C.     If an approved health plan ceases to exist, the alliance shall provide an alternate approved health plan.   

D.     An approved health plan shall provide covered individuals the right to continue health insurance coverage through an approved health plan as individual health insurance provided by the same member upon the death of the employee or upon the divorce, annulment or dissolution of marriage or legal separation of the spouse from the employee or by termination of employment by electing to do so within a period of time specified in the health insurance if the employee was covered under an approved health plan while employed for at least six consecutive months. The individual may be charged an additional administrative charge for the individual health insurance.   

E.     The right to continue health insurance coverage provided in this section terminates if the covered individual resides outside the United States for more than six consecutive months.