Sec. 1252.207. LIABILITY OF PREVIOUS CARRIER. A carrier of a health benefit plan that is being discontinued is liable only for any accrued liabilities regarding the plan and for any extension of benefits provided under the plan, regardless of whether the group policyholder or any other entity responsible for making payments or for submitting subscription charges to the carrier: (1) replaces the coverage provided under the discontinued plan with health benefit plan coverage provided by another carrier; (2) self-insures a health benefit plan; or (3) does not provide health benefit plan coverage.
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