N.J. Admin. Code § 11:2-12.12 - Cancellation and nonrenewal
(a) The failure
of an employer, association, organization or other group to remit premiums when
due for any reason (including but not limited to interruption or termination of
employment or membership) shall not be regarded as "nonpayment of premium" by
any employee or member insured under any such plan providing for remittance of
premium by such employer, association, organization or other group, unless such
insured shall have been given written notice of such failure to remit and shall
not himself have paid such premium by the later of ten days after such notice
or the due date of such premium remittance under the mass marketing
plan .
(b) Any insurer which
delivers in this State to any employer, association or organization a contract
of insurance pursuant to the application or request of such employer,
association or organization, acting for an insured other than itself, shall be
deemed to have authorized such employer, association or organization to receive
on its behalf payment of any premium which is due on such contract at the time
of its issuance or delivery. Moneys collected for premiums for a mass marketing
plan shall be kept in a separate account for the benefit of insured employees
or members.
(c) Unless otherwise
covered by statute, regulation or policy, all mass marketing plans shall
provide those insured under such plan with an opportunity to purchase
individual equivalent coverage in the same insurer upon termination of
employment or membership or upon the discontinuance of the mass marketing plan .
The insured employee or member may maintain his policy in force upon payment of
the premium applicable to the class of risk to which he belongs on an
individual basis. The option to maintain the insurance in force shall be
exercised within 30 days following the date of termination.
(d) Any notice of cancellation or nonrenewal
of any policy of an employee or member insured under a mass marketing plan
shall be accompanied by a notice to the employee or member that, at his
request, the insurer will afford the employee or member, and the employer,
association, organization or other group a reasonable opportunity to consult
with the insurer and to present facts in opposition to cancellation or
nonrenewal.
Notes
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