R590-199-6. Implementation of Withdrawal

  (1) A covered carrier and all its affiliates that elect to withdraw from the market or to nonrenew a health benefit plan issued to covered insureds must provide written notice of the decision to do so to all affected insureds and to the insurance commissioner in each state in which an affected insured resides.

  (2) Each insured must be given at least 180-days notice prior to the nonrenewal date.

  (3) The commissioner is to receive written notice of the decision to withdraw or nonrenew any health benefit plan at least three working days prior to the mailing of the notice to affected covered insureds.

  (4) The carrier must include with the notice to the commissioner its certificate of authority which will be modified to prohibit the writing of business which the carrier has elected to nonrenew or withdraw from the market.

  (5) The carrier is prohibited from writing new business in the individual and small employer health benefit plan market for a period of five-years beginning on the date of discontinuation of the last coverage not renewed.

  (6) A covered carrier's affiliates, as defined in Subsection 31A-30-104(4), may also be required to withdraw as determined by the commissioner.

  (7) Each plan submitted to the commissioner must provide that the nonrenewal of any coverage under a health benefit plan will occur on the annual renewal date of each policy or plan. Nonrenewal shall occur on the annual renewal date.