(a) This section applies to all grandfathered plans and to every health benefit plan that is not a grandfathered plan. (b) (1) Subject to § 15-1106 of this title, a carrier may not rescind the coverage under a health benefit plan unless: (i) the insured individual performs an act, a practice, or an omission that constitutes fraud or makes a misrepresentation of material fact as prohibited by the health benefit plan; and (ii) except as provided in paragraph (2) of this subsection, the carrier complies with 45 C.F.R. § 147.128. (2) If the Commissioner adopts regulations as described in subsection (c) of this section, a carrier that rescinds the coverage under a health benefit plan in accordance with subsection (b) of this section shall comply with the adopted regulations. (c) To the extent necessary, the Commissioner shall adopt regulations that: (1) establish requirements that a carrier shall comply with to rescind coverage under subsection (b) of this section; and (2) are consistent with 45 C.F.R. § 147.128 and any federal rules and guidance as those provisions were in effect December 31, 2024.
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