NAC689C.202. Limitation on frequency of increases in premium rates; exceptions.

     1. Except as otherwise provided in this section, a carrier serving small employers shall not increase the premium rates for a group health benefit plan more frequently than every 6 months unless the increase in the premium rates is being made because:

     (a) An employer has requested a change in its group health benefit plan;

     (b) There has been a change in the number of employees covered by an employer that would affect the insurance premium rate of the employer; or

     (c) There has been a change in federal or state law which affects the cost of providing services under the group health benefit plan.

     2. If a carrier issues a group health benefit plan to a class of employers that consists solely of bona fide associations and uses a common date of renewal for that class, an increase in the premium rates for that class does not violate the provisions of subsection 1 solely because at least one but not all the members of that class will have an increase in premium rates more frequently than every 6 months.

     (Added to NAC by Comm’r of Insurance by R009-02, eff. 5-23-2002; A by R009-02, 7-11-2002)