Section 1357.503.035 Of Article 3.16. Nongrandfathered Small Employer Plans From California Health And Safety Code >> Division 2. >> Chapter 2.2. >> Article 3.16.
1357.503.035
. (a) For plan contracts subject to this article, an
association that meets the definition of a guaranteed association, as
set forth in Section 1357.500, except for the requirement that 1,000
persons be covered, shall be entitled to purchase small employer
health coverage as if the association were a guaranteed association,
except that the coverage shall be guaranteed only for those members
of an association, as defined in subdivision (m) of Section 1357.500,
(1) who were receiving coverage or had successfully applied for
coverage through the association as of June 30, 1993, (2) who were
receiving coverage through the association as of December 31, 1992,
and whose coverage lapsed at any time thereafter because the
employment through which coverage was received ended or an employer's
contribution to health coverage ended, or (3) who were covered at
any time between June 30, 1993, and July 1, 1994, under a contract
that was in force on June 30, 1993.
(b) An association obtaining health coverage for its members
pursuant to this section shall otherwise be afforded all the rights
of a guaranteed association under this chapter, including, but not
limited to, guaranteed renewability of coverage.