PART G

Sec. G-1. 24-A MRSA §2850-B, sub-§5 is enacted to read:

5. Association plans.__The requirements of this subsection apply to group contracts that are subject to this section and that are issued to association groups pursuant to section 2805-A.__ Carriers shall renew coverage for association members if coverage through an association is terminated because the association ceases to exist, changes its membership eligibility criteria, fails to pay premiums, commits fraud or misrepresentation or voluntarily terminates the group policy.

A.__If coverage to an employer through an association is terminated, the carrier shall renew the coverage with the employer becoming the policyholder.

B.__If coverage to an individual member of an association is terminated, the carrier shall renew the coverage with the individual becoming the policyholder.__A carrier that has been granted an exemption pursuant to section 2736-C, subsection 9 does not lose that exemption simply by virtue of renewing coverage to individuals under this paragraph.

The requirements of this subsection do not apply if the employer or individual fails to pay premiums, commits fraud or misrepresentation, voluntarily terminates membership in the association or ceases to qualify for membership for reasons other than a change in the association's membership eligibility criteria.

PART H

Sec. H-1. 24-A MRSA §2848, sub-§1-B, as amended by PL 2001, c. 258, Pt. E, §5, is further amended to read:

1-B. Federally creditable coverage. "Federally creditable coverage" is defined as follows.

A. "Federally creditable coverage" means health benefits or coverage provided under any of the following:

(1) An employee welfare benefit plan as defined in Section 3(1) of the federal Employee Retirement Income