§ 131E-302. Replacement coverage. - North Carolina Statutes

§ 131E‑302. Replacement coverage.

(a)        Any carrier providing replacement coverage with respect tohospital, medical, or surgical expense or service benefits, within a period of60 days from the date of discontinuance of a prior PSO contract or policy providingthese hospital, medical, or surgical expense or service benefits, shallimmediately cover all beneficiaries who were validly covered under the previousPSO contract or policy at the date of discontinuance and who would otherwise beeligible for coverage under the succeeding carrier's contract, regardless ofany provisions of the contract relating to hospital confinement or pregnancy.

(b)        Except to the extent benefits for the condition would havebeen reduced or excluded under the prior carrier's contract or policy, noprovision in a succeeding carrier's contract of replacement coverage that wouldoperate to reduce or exclude benefits on the basis that the condition givingrise to benefits preceded the effective date of the succeeding carrier'scontract shall be applied with respect to those beneficiaries validly coveredunder the prior carrier's contract on the date of discontinuance. (1998‑227, s. 1.)