2005 Vermont Code - § 4090a. — Continuation of group

§ 4090a. Continuation of group

(a) All group health insurance policies, issued by an insurance company, a nonprofit hospital or medical service corporation, a self-insured group plan and prepaid health insurance plans delivered or issued for delivery in this state which insure employees or members for hospital and medical insurance on an expense incurred, service basis or prepaid basis, other than for specific diseases or for accidental injuries only, shall provide that any person whose insurance under the group policy would terminate because of the termination of employment, divorce or legal separation of the covered employee from the employee's spouse, a dependent child ceasing to be a dependent child under the generally applicable requirements of the policy, or the death of the covered employee or member shall be entitled to continue their hospital and medical insurance under that group policy.

(b) The provisions of this section shall not apply if:

(1) The deceased person or terminated employee was not insured under the group policy during the entire three months' period preceding termination.

(2) The person is or could be covered by Medicare.

(3) The person is or could be covered by any other insured or uninsured arrangement which provides hospital and medical coverage for individuals in a group and under which the person was not covered immediately prior to such termination.

(4) The person has a loss of employment due to misconduct as defined in 21 V.S.A. § 1344.

(c) The continuation required by this section only applies to hospital and medical benefits.

(d) Notice of the continuation privilege shall be included in each certificate of coverage. (Added 1983, No. 165 (Adj. Sess.), § 1; amended 1985, No. 184 (Adj. Sess.), § 1; 2001, No. 121 (Adj. Sess.), § 3, eff. June 5, 2002.)