Section 1357.606 Of Article 3.17. Grandfathered Small Employer Plans From California Health And Safety Code >> Division 2. >> Chapter 2.2. >> Article 3.17.
1357.606
. (a) For plan contracts expiring after July 1, 1994, 60
days prior to July 1, 1994, an association that meets the definition
of a guaranteed association, as set forth in Section 1357.600, except
for the requirement that 1,000 persons be covered, shall be entitled
to renew grandfathered small employer health care service plan
contracts 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 Section 1357.600, (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.