Requiring an insurer to continue group coverage on the basis of an agent's or representative's representations

What it would have done

Summary by the Legislative Reference Bureau, the Legislature's nonpartisan drafting office. It's their wording, not ours.

Under current law, an insurer or an insurance agent may not make or cause to be made any communication relating to an insurance contract that contains false or misleading information. If an insurance agent distributes cards or documents, exhibits a sign, or publishes an advertisement relating to an insurance contract that contains false or misleading information, there is a rebuttable presumption that the insurer also committed the violation. Current law also provides that an insurer is bound by any act of its agent while the agent's contract remains in force.

This bill requires an insurer that provides coverage under a group health care policy or plan to allow an insured to continue coverage under the group health care policy or plan as part of the group for the next term if an agent or other representative of the insurer has represented in writing to the insured that he or she is eligible to continue coverage under the group health care policy or plan as part of the group for the next policy or plan term. The bill prohibits the insurer from charging the insured a higher premium for the coverage than the premium that is charged other insureds under the group health care policy or plan. The bill also prohibits an insurance policy from including a provision that is contrary to the requirements under the bill.

Who's behind it

Fred A. Risser, a Democrat, is its author⁠.