59A-23G-3: Short-term plans; excepted benefits; standards for policy provisions.

A. The superintendent shall adopt and promulgate rules to establish specific standards:

(1) that set the manner, content and required disclosure for the sale of short-term plans and excepted benefits plans, including standards for full and fair disclosure; and

(2) for the sale of short-term plans and excepted benefits plans, which standards shall include standards relating to:

(a) terms of renewability or extension of coverage;

(b) initial and subsequent conditions of eligibility;

(c) nonduplication of coverage provisions;

(d) coverage of dependents;

(e) preexisting conditions;

(f) termination of insurance;

(g) probationary periods;

(h) limitations;

(i) exceptions;

(j) reductions and exclusions;

(k) elimination periods;

(l) requirements for replacement by the health insurance carrier;

(m) recurrent conditions;

(n) the definition of terms to describe the specific types of coverage sold pursuant to the Short-Term Health Plan and Excepted Benefit Act and specific standards and policy provisions required of these plans;

(o) benefit duration;

(p) scope of coverage;

(q) advertising and marketing;

(r) sales practices;

(s) mandatory disclosures;

(t) coverage suitability; and

(u) policy and certificate approval.

B. All advertisements, marketing materials and application and policy forms relating to short-term plans shall prominently display a notice that the coverage is unavailable to any potential insured who has been covered under a short-term plan in the previous twelve-month period.