In connection with offering any health insurance plans to small employers, each small employer insurer shall make reasonable disclosure in solicitation and sales materials provided to small employers of:

1. (1) the extent to which premium rates for a specific small employer are established or adjusted due to case characteristics, family composition, class of business, and the claim experience, health status, or duration of coverage of the employees or dependents of the small employer;
2. (2) the provisions concerning the insurer's right to change premium rates and the factors, including case characteristics, which affect changes in premium rates;
3. (3) a description of the class of business in which the small employer is or will be included, including the applicable grouping of plans;
4. (4) the provisions relating to renewability of coverage;
5. (5) the provisions relating to any preexisting condition exclusion; and

6. (6) the benefits and premiums available under all health insurance plans for which the employer is qualified.

   Information under this section must be provided to small employers in a manner determined to be understandable by the average small employer and must be sufficient to reasonably inform small employers of their rights and obligations under the health insurance coverage.

   An insurer is not required under this section to disclose any information that is proprietary or trade secret information under applicable law.

HISTORY: 1991 Act No. 131, Section 5; 1997 Act No. 5, Section 11; 1997 Act No. 70, Section 4.