Section 2013.50  Requirements for Notice of Discontinuance

a)         Any notice of discontinuance so given by the carrier shall advise the group contract holder to notify enrolled individuals covered under the contract within 10 working days after receipt of such notice of the date the group contract will discontinue and to advise, unless otherwise provided in the contract, the carrier shall not be liable for claims for losses incurred after the date of discontinuance.

b)         In the instance in which the plan involves employee contributions, if the contract holder continues to collect contributions for the coverage after the date of discontinuance, the group contract holder may be held solely liable for the benefits with respect to the period for which the contributions have been collected.

c)         Simultaneously with the notice of discontinuance, the carrier shall furnish to the group contract holder a sample of a notice form to be distributed to the enrolled individuals indicating such discontinuance, the effective date thereof, and advising the enrolled individuals to refer to their certificates in order to determine what rights, if any, are available to them upon such discontinuance.

(Source:  Amended at 17 Ill. Reg. 1525, effective January 20, 1993)