5.__Coverage for late enrollees.__In providing coverage to late enrollees, small group health plan carriers are allowed to exclude or limit coverage for a late enrollee subject to the limitations set forth in section 2849-B, subsection 3.

6.__Guaranteed issuance and guaranteed renewal.__Carriers providing small group health plans must meet the following requirements on issuance and renewal.

A.__Any small group health plan offered to any eligible group or subgroup must be offered to all eligible groups that meet the carrier's minimum participation requirements, which may not exceed 75%, to all eligible employees and their dependents in those groups.__In determining compliance with minimum participation requirements, eligible employees and their dependents that have existing health care coverage may not be considered in the calculation.__If an employee declines coverage because the employee has other coverage, any dependents of that employee who are not eligible under the employee's other coverage are eligible for coverage under the small group health plan.

B.__A carrier may deny coverage under a managed care plan, as defined by section 4301-A:

(1)__To employers who have no employees who live, reside or work within the approved service area of the plan; and

(2)__To employers if the carrier has demonstrated to the superintendent's satisfaction that:

(a)__The carrier does not have the capacity to deliver services adequately to additional enrollees within all or a designated part of its service area because of its obligations to existing enrollees; and

(b)__The carrier is applying this provision uniformly to individuals and groups without regard to any health-related factor.