(b)__The total of any decreases in benefits may not decrease the actuarial value of the total benefit package by more than 5%.

(c)__For purposes of the calculations in divisions (a) and (b), increases and decreases must be considered separately and may not offset one another.

(5)__A carrier must give 60 days' notice of any modification pursuant to this paragraph to all affected policyholders and certificate holders.

PART B

Sec. B-1. 24 MRSA §2317-B, sub-§15-A is enacted to read:

15-A.__Title 24-A, section 2809-A.__Conversion on termination of policy or eligibility, Title 24-A, section 2809-A;

Sec. B-2. 24-A MRSA §2809-A, sub-§1-A, as repealed and replaced by PL 1995, c. 625, Pt. A, §25, is amended to read:

1-A. Notification of cancellation. An insurer must provide by first class mail at least 10 days' prior notification of cancellation for nonpayment of premium may not cancel or refuse to renew any policy for hospital, surgical, dental or major medical expense insurance until the insurer has provided by first class mail at least 10 days' prior notification according to this section. The notice must include the date of cancellation of coverage and, if applicable, the time period for exercising policy conversion rights. The notice also must include an explanation of any applicable grace period. Notification is not required when the insurer has received written notice from the group policyholder that replacement coverage has been obtained.

A. Notice must be mailed to the group policyholder or subgroup sponsor.

B. At the time of notification under paragraph A, notice must be mailed to the certificate holder at: the last address provided to the insurer by the group policyholder, the subgroup sponsor or the certificate holder.

(1) The last address provided by the subgroup sponsor or the group policyholder to the insurer; or