NAC689B.070. Coverage of employer’s group; standards for exclusion or limitation.

     1. Any insurer wishing to exclude or limit the coverage in a policy issued to an association for any person based upon his evidence of insurability, must submit the standards for exclusion or limitation to the Division. These standards must comply with the provisions of this section.

     2. For all the employer’s groups within the association:

     (a) The coverage provided to members of that employer’s group must be a guaranteed renewable policy for as long as the association continues to renew that employer’s group.

     (b) Once the insurer accepts the employer’s group, the insurer may not periodically underwrite the employer’s group or use that underwriting to cancel the employer’s group or any person within it or to transfer a member to another policy.

     (c) If a new employee requests to be added to the employer’s group, the insurer:

          (1) Shall accept that employee and his dependents based upon the underwriting standards used at the time the employer’s group was originally underwritten as required by NAC 689B.060 if the request is made within the time established in the policy or by the employer for the eligibility of new employees; and

          (2) May request evidence of insurability from the employee and his dependents if the request for coverage is not made within the time established in the policy or by the employer for eligibility for new employees.

     (Added to NAC by Comm’r of Insurance, eff. 10-12-88; A 5-27-92)