2012 -- H 7997

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LC02287

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO INSURANCE -- SMALL EMPLOYER HEALTH INSURANCE

     Introduced By: Representatives Trillo, Carnevale, Baldelli-Hunt, Costa, and Chippendale

     Date Introduced: March 27, 2012

     Referred To: House Small Business

It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 27-50 of the General Laws entitled "Small Employer Health

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Insurance Availability Act" is hereby amended by adding thereto the following section:

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     27-50-6.1. Cancellation. -- An insurer that cancels coverage issued in compliance with

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this chapter shall notify each employee covered by the health insurance policy and the small

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employer upon cancellation of such coverage. All such notifications shall be sent by certified

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mail, return receipt requested. If such cancellation is by reason of non-payment or a technical

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violation of policy terms, the small employer shall have thirty (30) days from the date of mailing

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of such notice of cancellation to reinstate coverage by paying all premiums due or past due and/or

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by correcting such technical violation.

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     SECTION 2. This act shall take effect upon passage.

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LC02287

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO INSURANCE -- SMALL EMPLOYER HEALTH INSURANCE

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     This act would provide that an insurer cancelling coverage issued under the small

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employer health insurance program must notify the each employee and the small employer upon

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cancellation of such coverage by certified mail, return receipt requested, and would further

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provide that if such cancellation is by reason of non-payment or a technical violation of policy

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terms, the small employer would have thirty (30) days from the date of mailing of such notice of

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cancellation to reinstate coverage by paying all premiums due or past due and/or by correcting

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such technical violation.

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     This act would take effect upon passage.

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LC02287

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