(a) Decision on eligibility is the conclusion or determination reached in the application process. Such decision shall constitute the decision of the contractor. The decision shall be one of the following:

1. (1) Accepted for coverage. This means that eligibility has been established through review and verification to the satisfaction of the contractor.

2. (2) Not accepted for coverage. Applications are denied when:

   1. (i) in the course of the application process the information given by the applicant establishes, without the need for further review and verification, that he/she is ineligible;
   2. (ii) ineligibility is determined in the course of or upon completion of a review and verification, or if the applicant refuses to comply with any requirement essential to the determination of eligibility; or
   3. (iii) the application is incomplete.

3. (3) No decision is required when:

   1. (i) an application is withdrawn by the applicant; or
   2. (ii) the contractor documents that the applicant has died, cannot be located, or has left the State prior to the completion of the review and verification.