§ 4305. Group contracts. (a) A corporation subject to the provisions\nof this article may issue a group contract, provided the group of\npersons thereby covered conforms to the requirements of subsections (c)\nand (d) of section four thousand two hundred thirty-five or of\nsubparagraph (C) of paragraph three of subsection (a) of section four\nthousand two hundred thirty-seven of this chapter, and provided such\ncontract and the individual certificates issued to members of the group\nshall comply in substance with this article. A corporation subject to\nthe provisions of this article shall issue to the group contractholder,\nfor delivery to each member of the insured group, a copy of the\ncontract, or a certificate which can be in the form of a booklet setting\nforth in summary form a statement of the essential features of the\ninsurance coverage. A group contract issued pursuant to this section\nshall be subject to subsections (k) and (l) of section four thousand two\nhundred thirty-five of this chapter.\n (b) Any such contract which provides for the adjustment of the rate of\npremium based upon the experience thereunder shall specify the duration\nof the period of insurance thereunder; such period shall not exceed\nthree years, provided, however, that such contract may provide that, in\nthe absence of one month's prior written notice by either party to the\nother, it shall be automatically renewed at the termination of any\nperiod thereunder for a succeeding period of not less than one nor more\nthan three years' duration. In any case where such contract is for a\nperiod of more than one year, an appropriate additional rate of premium\nshall be charged therefor. Any such contract may provide for the\nadjustment of the rate of premium based upon the experience thereunder\nat the end of the first period of insurance thereunder or at the end of\nany subsequent period of insurance thereunder and any such adjustment\nmay be made retroactive only for the period of insurance immediately\npreceding such adjustment.\n (c) (1)(A) Any such contract may provide that benefits will be\nfurnished to a member of a covered group, for the member, the member's\nspouse, child or children, or other persons chiefly dependent upon the\nmember for support and maintenance; provided that:\n (i) a contract of hospital, medical, surgical, or prescription drug\nexpense insurance that provides coverage for children shall provide such\ncoverage to a married or unmarried child until attainment of age\ntwenty-six, without regard to financial dependence, residency with the\nmember, student status, or employment, except a contract that is a\ngrandfathered health plan may, for plan years beginning before January\nfirst, two thousand fourteen, exclude coverage of an adult child under\nage twenty-six who is eligible to enroll in an employer-sponsored health\nplan other than a group health plan of a parent. For purposes of this\nitem, "grandfathered health plan" means coverage provided by a\ncorporation in which an individual was enrolled on March twenty-third,\ntwo thousand ten for as long as the coverage maintains grandfathered\nstatus in accordance with section 1251(e) of the Affordable Care Act, 42\nU.S.C. § 18011(e); and\n (ii) a contract under which coverage terminates at a specified age\nshall, with respect to an unmarried child who is incapable of\nself-sustaining employment by reason of mental illness, developmental\ndisability, as defined in the mental hygiene law, or physical handicap\nand who became so incapable prior to attainment of the age at which\ncoverage would otherwise terminate and who is chiefly dependent upon\nsuch member for support and maintenance, not so terminate while the\ncontract remains in force and the child remains in such condition, if\nthe member has within thirty-one days of such child's attainment of the\ntermination age submitted proof of such child's incapacity as described\nherein.\n (B) In addition to the requirements
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