§ 58-53-110. Other conversion provisions. - North Carolina Statutes

§58‑53‑110.  Other conversion provisions.

(a)        If coverage wouldin any event have been continued under the group policy on an employeefollowing his retirement prior to the time he is or could be covered byMedicare and provided he would have been eligible for continuation under thegroup policy as specified in G.S. 58‑53‑10, the employee or membermay elect, in lieu of such continuation of group insurance, to have the sameconversion rights as would apply had that insurance terminated at retirement.

(b)        The convertedpolicy may provide for reduction or termination of coverage of any person uponhis eligibility for coverage under Medicare or under any other State or federallaw providing for benefits similar to those provided by the converted policy.

(c)        Subject to theconditions set forth in this subsection, the conversion privilege shall also beavailable (i) to the surviving spouse, if any, at the death of the employee ormember, with respect to the spouse and any eligible children whose coverageunder the group policy terminates by reason of such death, or if the grouppolicy provides for continuation of dependents' coverage following theemployee's or member's death, at the end of such continuation, or (ii) to thespouse of the employee or member upon termination of coverage of the spousebecause the spouse becomes ineligible because of divorce, separation, orotherwise, while the employee or member remains insured under the group policy,with respect to the spouse and such children whose coverage under the grouppolicy terminates at the same time, or (iii) to a child solely with respect tohimself upon termination of his coverage by reason of ceasing to be an eligiblefamily member under the group policy, if a conversion privilege is nototherwise provided above with respect to such termination.

(d)        The insurer mayelect to provide group insurance coverage in lieu of the issuance of aconverted individual policy, notwithstanding the maximum period of groupcontinuation specified in G.S. 58‑53‑35(1).

(e)        A notification ofthe conversion privilege shall be included in each certificate of coverage.

(f)         A converted policywhich is delivered outside this State may be on a form which could be deliveredin such other jurisdiction as a converted policy had the group policy beenissued in that jurisdiction. (1981, c. 706, s. 1; 1983, c.668, s. 1.)