Section 1357.04 Of Article 3.1. Small Employer Group Access To Contracts For Health Care Services From California Health And Safety Code >> Division 2. >> Chapter 2.2. >> Article 3.1.
1357.04
. (a) After a small employer submits a completed application
form for a plan contract, the plan shall, within 30 days, notify the
employer of the employer's actual premium charges for that plan
contract established in accordance with Section 1357.12. The employer
shall have 30 days in which to exercise the right to buy coverage at
the quoted premium charges.
(b) When a small employer submits a premium payment, based on the
quoted premium charges, and that payment is delivered or postmarked,
whichever occurs earlier, within the first 15 days of the month,
coverage under the plan contract shall become effective no later than
the first day of the following month. When that payment is neither
delivered nor postmarked until after the 15th day of a month,
coverage shall become effective no later than the first day of the
second month following delivery or postmark of the payment.
(c) During the first 30 days after the effective date of the plan
contract, the small employer shall have the option of changing
coverage to a different plan contract offered by the same health care
service plan. If a small employer notifies the plan of the change
within the first 15 days of a month, coverage under the new plan
contract shall become effective no later than the first day of the
following month. If a small employer notifies the plan of the change
after the 15th day of a month, coverage under the new plan contract
shall become effective no later than the first day of the second
month following notification.