1. (a) This section applies to all grandfathered plans and to every health benefit plan that is not a grandfathered plan.

2. (b)

   1. (1) Subject to § 15-1106 of this title, a carrier may not rescind the coverage under a health benefit plan unless:

      1. (i) the insured individual performs an act, a practice, or an omission that constitutes fraud or makes a misrepresentation of material fact as prohibited by the health benefit plan; and
      2. (ii) except as provided in paragraph (2) of this subsection, the carrier complies with 45 C.F.R. § 147.128.
   2. (2) If the Commissioner adopts regulations as described in subsection (c) of this section, a carrier that rescinds the coverage under a health benefit plan in accordance with subsection (b) of this section shall comply with the adopted regulations.

3. (c) To the extent necessary, the Commissioner shall adopt regulations that:

   1. (1) establish requirements that a carrier shall comply with to rescind coverage under subsection (b) of this section; and
   2. (2) are consistent with 45 C.F.R. § 147.128 and any federal rules and guidance as those provisions were in effect December 31, 2024.

Added by Acts 2020, c. 620, § 1, eff. May 8, 2020; Acts 2020, c. 621, § 1, eff. May 8, 2020. Amended by Acts 2025, c. 469, § 1, eff. June 1, 2025.