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Session Laws

1992

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CHAPTER 72 AN ACT FURTHER REGULATING THE CANCELLATION OF GROUP CONTRACTS.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

Section 7 of chapter 176G of the General Laws, as appearing in the 1990 Official Edition, is hereby amended by striking out clause (7) and inserting in place thereof the following clause:-

(7) that a member's coverage may not be cancelled, nor its renewal refused, except in the following circumstances:-

(i) failure by the member or other responsible party to make payments required under the contract;

(ii) for misrepresentation or fraud on the part of the member;

(iii) commission of acts of physical or verbal abuse by the member which pose a threat to providers or other members of the health maintenance organization and which are unrelated to the physical or mental condition of the member; provided, however, that the commissioner prescribes or approves the procedures for the implementation of the provisions of this clause;

(iv) relocation of the member outside the service area of the health maintenance organization;

(v) nonrenewal of the group contract through which the member receives coverage.

Approved June 19, 1992.