1. (a)

   1. (1) In this section the following words have the meanings indicated.

   2. (2) “Carrier” means a person that is:

      1. (i) an insurer that holds a certificate of authority in the State and provides health insurance in the State;
      2. (ii) a health maintenance organization that holds a certificate of authority to operate in the State; or
      3. (iii) a nonprofit health service plan that holds a certificate of authority to operate in the State.

   3. (3) “Health coverage” means any of the following:

      1. (i) a health insurance contract that is issued or delivered in the State by an insurer;
      2. (ii) a contract that is issued or delivered in the State by a nonprofit health service plan; or
      3. (iii) a contract that is issued or delivered in the State by a health maintenance organization.
   4. (4) “Health status-related factor” has the meaning stated in § 15-1301 of this article.

   5. (5) “Individual contract” means a contract between a carrier and an individual covering:

      1. (i) the individual;
      2. (ii) the individual and the individual's family members; or
      3. (iii) the family members of the individual.

   6. (6)

      1. (i) “Reunderwrite” means to reevaluate any health status-related factor, occupation, hobby, or activity of an individual for the purpose of:

         1. 1. terminating health coverage of the individual; or
         2. 2. moving the individual from a more favorable rate class to a less favorable rate class.

      2. (ii) “Reunderwrite” does not include:

         1. 1. moving an individual from one rate tier to another rate tier solely due to the addition or deletion of a family member under the health coverage;
         2. 2. increasing the premium under an attained age rated contract solely due to the increasing age of the individual covered under the health coverage;
         3. 3. on receipt of an application from an insured to increase the benefits under an existing contract, evaluating the health status-related factors, occupation, hobbies, or activities of the insured for the purpose of increasing the benefits under the contract; or
         4. 4. during the period in which a carrier has the right to contest a policy, denying a claim, amending the policy, making an adjustment to the premium, or rescinding the policy based on a material misrepresentation or fraud in the application.
2. (b) A carrier may not reunderwrite an individual for health coverage under an individual contract after the individual contract has been issued.

Added by Acts 2005, c. 417, § 1, eff. May 10, 2005.