2005 Vermont Code - § 4090c. — Termination of coverage

§ 4090c. Termination of coverage

Continuation of insurance under the group policy shall terminate upon the occurrence of any of the following:

(1) the date six months after the date that insurance under the policy would have terminated due to the death or loss of employment of the employee or member, the divorce or legal separation of the covered employee from the employee's spouse, or a dependent child ceasing to be a dependent child under the generally applicable requirements of the policy of the employee or member;

(2) the person fails to make timely payment of the required contribution;

(3) the person is or could be covered by Medicare;

(4) the date on which the group policy is terminated or, in the case of an employee, the date the decedent's or terminated employee's employer terminates participation under the group policy. If such coverage is replaced by similar coverage under another group policy:

(A) the person shall have the right to become covered under that replacement policy, for the balance of the period that he or she would have remained covered under the prior group policy;

(B) the minimum level of benefits to be provided by the replacement policy shall be the applicable level of benefits of the prior group policy reduced by any benefits payable under that prior group policy;

(C) the prior group policy shall continue to provide benefits to the extent of its accrued liabilities and extensions of benefits as if the replacement has not occurred. (Added 1983, No. 165 (Adj. Sess.), § 1; amended 1985, No. 184 (Adj. Sess.), § 3; 2001, No. 121 (Adj. Sess.), § 5, eff. June 5, 2002.)