Amendment ASA2-AB416

AB416-ASA2, s. 16 Section 16. 632.749 of the statutes is created to read:

AB416-ASA2,12,17 632.749 Contract termination and renewability. (1) Midterm cancellation. Notwithstanding s. 631.36 (2) to (4m), a group health benefit plan may not be canceled by an insurer before the expiration of the agreed term, and shall be renewable to the policyholder and all insureds and dependents eligible under the terms of the group health benefit plan at the expiration of the agreed term at the option of the policyholder, except for any of the following reasons:

AB416-ASA2,12,18 (a) Failure to pay a premium when due.

AB416-ASA2,12,20 (b) Fraud or misrepresentation by the policyholder, or, with respect to coverage for an insured individual, fraud or misrepresentation by that insured individual.

AB416-ASA2,12,21 (c) Substantial breaches of contractual duties, conditions or warranties.

AB416-ASA2,12,23 (d) The number of individuals covered under the group health benefit plan is less than the number required by the group health benefit plan.

AB416-ASA2,12,25 (e) The employer to which the group health benefit plan is issued is no longer actively engaged in a business enterprise.

AB416-ASA2,13,2 (2) Nonrenewal. Notwithstanding sub. (1), an insurer may elect not to renew a group health benefit plan if the insurer complies with all of the following:

AB416-ASA2,13,4 (a) The insurer ceases to renew all other group health benefit plans issued by the insurer.

AB416-ASA2,13,7 (b) The insurer provides notice to all affected policyholders and to the commissioner in each state in which an affected insured individual resides at least one year before termination of coverage.

AB416-ASA2,13,9 (c) The insurer does not issue a group health benefit plan before 5 years after the nonrenewal of the group health benefit plans.

AB416-ASA2,13,13 (d) The insurer does not transfer or otherwise provide coverage to a policyholder from the nonrenewed business unless the insurer offers to transfer or provide coverage to all affected policyholders from the nonrenewed business without regard to claims experience, health condition or duration of coverage.

AB416-ASA2,13,15 (3) Insurer in liquidation. This section does not apply to a group health benefit plan if the insurer that issued the group health benefit plan is in liquidation.

AB416-ASA2,13,18 (4) Applicability to certain government plans. This section does not apply to a group health benefit plan offered by the state under s. 40.51 (6) or by the group insurance board under s. 40.51 (7).

AB416-ASA2, s. 17 Section 17. 632.76 (2) (a) of the statutes is amended to read:

AB416-ASA2,13,25 632.76 (2) (a) No claim for loss incurred or disability commencing after 2 years from the date of issue of the policy may be reduced or denied on the ground that a disease or physical condition existed prior to the effective date of coverage, unless the condition was excluded from coverage by name or specific description by a provision effective on the date of loss. This paragraph does not apply to a group health benefit plan, as defined in s. 632.745 (1) (c), which is subject to s. 632.745 (2).

AB416-ASA2, s. 18 Section 18. 632.896 (4) of the statutes is amended to read:

AB416-ASA2,14,7 632.896 (4) Preexisting conditions. Notwithstanding s. ss. 632.745 (2) and 632.76 (2) (a), a disability insurance policy that is subject to sub. (2) and that is in effect when a court makes a final order granting adoption or when the child is placed for adoption may not exclude or limit coverage of a disease or physical condition of the child on the ground that the disease or physical condition existed before coverage is required to begin under sub. (3).

AB416-ASA2, s. 19 Section 19. 635.02 (5m) of the statutes is repealed.

AB416-ASA2, s. 20 Section 20. 635.07 of the statutes is repealed.

AB416-ASA2, s. 21 Section 21. 635.17 of the statutes is repealed.

AB416-ASA2, s. 22 Section 22. 635.26 (1) (a) of the statutes is renumbered 635.26 (1).

AB416-ASA2, s. 23 Section 23. 635.26 (1) (b) of the statutes is repealed.

AB416-ASA2, s. 24 Section 24. Initial applicability.

AB416-ASA2,14,14 (1) This act first applies to all of the following:

AB416-ASA2,14,17 (a)  Except as provided in paragraphs (b) and (c), group health benefit plans that are issued or renewed, and self-insured health plans that are established, extended, modified or renewed, on the effective date of this paragraph.

AB416-ASA2,14,20 (b) Group health benefit plans covering employes who are affected by a collective bargaining agreement containing provisions inconsistent with this act that are issued or renewed on the earlier of the following:

AB416-ASA2,14,21 1. The day on which the collective bargaining agreement expires.

AB416-ASA2,14,23 2. The day on which the collective bargaining agreement is extended, modified or renewed.

AB416-ASA2,15,3 (c) Self-insured health plans covering employes who are affected by a collective bargaining agreement containing provisions inconsistent with this act that are established, extended, modified or renewed on the earlier of the following:

AB416-ASA2,15,4 1. The day on which the collective bargaining agreement expires.

AB416-ASA2,15,6 2. The day on which the collective bargaining agreement is extended, modified or renewed.

AB416-ASA2, s. 25 Section 25. Effective date.

AB416-ASA2,15,9 (1) This act takes effect on the first day of the 12th month beginning after publication.

AB416-ASA2,15,10 (End)