58-17-30.4 Notice of birth or adoption required for continued coverage.
Notice of birth or adoption required for continued coverage.
An insurer may
require notice that a newly born or newly adopted child is to be added to the policy or that coverage
is to be changed from single or spousal coverage to family coverage. However, the insurer may not
require notification sooner than the birth of the child or the start of the adoption bonding period. If
the child is added or coverage changed to family coverage before the birth of the child or the start
of the adoption bonding period, no additional premium may be charged by the insurer until the birth
of the child or the start of the adoption bonding period. The insurer shall take reasonable steps to
provide adequate notice to insureds of the need to alter coverage to ensure newborn or adopted
children are covered and of the lack of premium adjustment until the birth of the child or the start
of the adoption bonding period. An insurer is considered to have taken reasonable steps if prominent
disclosure of the requirements of this section are included in a certificate, subscriber contract,
evidence of coverage, or employee handbook if such are provided to all insureds.
If payment of a specific premium or subscription fee is required to provide coverage for a child,
the policy or contract may require that notification of birth of a newly born child or notification of
the start of the six-month adoption bonding period for an adopted child and payment of the required
premium or fees be furnished to the insurer or nonprofit service or indemnity corporation within
thirty-one days after the date of birth or start of the bonding period in order to have the coverage
continued beyond the thirty-one day period.
Source: SL 1974, ch 322; SL 1983, ch 375, § 3; SL 1994, ch 387, § 6.