                                 CODE OF VIRGINIA

RENEWABILITY (§ 38.2-3432.1)

A. Every health insurance issuer that offers health insurance coverage in the
group market in this Commonwealth shall renew or continue in force such coverage
with respect to all insureds at the option of the employer except:

   1. For nonpayment of the required premiums by the policyholder, or contract
   holder, or where the health insurance issuer has not received timely premium
   payments;

   2. When the health insurance issuer is ceasing to offer coverage in the small
   group market in accordance with subdivisions 9 and 10;

   3. For fraud or misrepresentation by the employer, with respect to their
   coverage;

   4. With regard to coverage provided to an eligible employee, for fraud or
   misrepresentation by the employee with regard to his or her coverage;

   5. For failure to comply with contribution and participation requirements
   defined by the health benefit plan;

   6. For failure to comply with health benefit plan provisions that have been
   approved by the Commission;

   7. When a health insurance issuer offers health insurance coverage in the
   group market through a network plan, and there is no longer an enrollee in
   connection with such plan who lives, resides, or works in the service area of
   the health insurance issuer (or in the area for which the health insurance
   issuer is authorized to do business) and, in the case of the group market, the
   health insurance issuer would deny enrollment with respect to such plan under
   the provisions of subdivision 9 or 10;

   8. When health insurance coverage is made available in the group market only
   through one or more bona fide associations, the membership of an employer in
   the association (on the basis of which the coverage is provided) ceases but
   only if such coverage is terminated under this subdivision uniformly without
   regard to any health status related factor relating to any covered individual;

   9. When a health insurance issuer decides to discontinue offering a particular
   type of group health insurance coverage in the group market in this
   Commonwealth, coverage of such type may be discontinued by the health
   insurance issuer in accordance with the laws of this Commonwealth in such
   market only if (i) the health insurance issuer provides notice to each plan
   sponsor provided coverage of this type in such market (and participants and
   beneficiaries covered under such coverage) of such discontinuation at least
   ninety days prior to the date of the discontinuation of such coverage; (ii)
   the health insurance issuer offers to each plan sponsor provided coverage of
   this type in such market, the option to purchase any other health insurance
   coverage currently being offered by the health insurance issuer to a group
   health plan in such market; and (iii) in exercising the option to discontinue
   coverage of this type and in offering the option of coverage under this
   subdivision, the health insurance issuer acts uniformly without regard to the
   claims experience of those sponsors or any health status-related factor
   relating to any participants or beneficiaries covered or new participants or
   beneficiaries who may become eligible for such coverage;

   10. In any case in which a health insurance issuer elects to discontinue
   offering all health insurance coverage in the group market in this
   Commonwealth, health insurance coverage may be discontinued by the health
   insurance issuer only in accordance with the laws of this Commonwealth and if:
   (i) the health insurance issuer provides notice to the Commission and to each
   plan sponsor (and participants and beneficiaries covered under such coverage)
   of such discontinuation at least 180 days prior to the date of the
   discontinuation of such coverage; and (ii) all health insurance issued or
   delivered for issuance in this Commonwealth in such market (or markets) are
   discontinued and coverage under such health insurance coverage in such market
   (or markets) is not renewed;

   11. In the case of a discontinuation under subdivision 10 of this subsection
   in a market, the health insurance issuer may not provide for the issuance of
   any health insurance coverage in the market and this Commonwealth during the
   five-year period beginning on the date of the discontinuation of the last
   health insurance coverage not so renewed;

   12. At the time of coverage renewal, a health insurance issuer may modify the
   health insurance coverage for a product offered to a group health plan or
   health insurance issuer offering group health insurance coverage in the group
   market if, for coverage that is available in such market other than only
   through one or more bona fide associations, such modification is consistent
   with the laws of this Commonwealth and effective on a uniform basis among
   group health plans or health insurance issuers offering group health insurance
   coverage with that product; or

   13. In applying this section in the case of health insurance coverage that is
   made available by a health insurance issuer in the group market to employers
   only through one or more associations, a reference to &#8220;plan
   sponsor&#8221; is deemed, with respect to coverage provided to an employer
   member of the association, to include a reference to such employer.

B. If coverage to the small employer market pursuant to this article ceases to
be written, administered or otherwise provided, such coverage shall continue to
be governed by this article with respect to business conducted under this
article that was transacted prior to the effective date of termination and that
remains in force.

HISTORY: 1997, cc. 807, 913; 1998, c. 24; 2013, c. 751.