Code of Maryland Regulations
Title 31 - MARYLAND INSURANCE ADMINISTRATION
Subtitle 12 - HEALTH MAINTENANCE ORGANIZATIONS; ENTITIES THAT ACT AS HEALTH INSURERS
Chapter 31.12.04 - Dental Plans - General Provisions
Section 31.12.04.05 - Grace Period Requirements

Universal Citation: MD Code Reg 31.12.04.05

Current through Register Vol. 51, No. 19, September 20, 2024

A. Individual Dental Benefit Contracts.

(1) If the individual dental benefit contract is guaranteed renewable for the life of the individual dental benefit contract, the dental benefit contract shall contain in substance the following provision: "Grace Period: A grace period of 31 days will be granted for the payment of each premium falling due after the first premium, during which grace period this contract shall continue in force."

(2) If the individual dental benefit contract gives the dental plan organization the right to refuse renewal, the individual dental benefit contract shall contain in substance the following provision: "Grace Period: Unless at least 30 days before the premium due date the dental plan organization has delivered to the subscriber, or has mailed to the subscriber's last address as shown by the records of the dental plan organization, written notice of its intention not to renew this contract beyond the period for which the premium has been accepted, a grace period of 31 days will be granted for the payment of each premium falling due after the first premium, during which grace period this contract shall continue in force."

B. Group Dental Benefit Contracts.

(1) Each group dental benefit contract shall contain in substance the following provision: "Grace Period: A grace period of 30 days will be granted for payment of each premium due after the first premium, unless the dental plan organization does not intend to renew the contract beyond the period for which premium has been accepted and notice of the intention not to renew is delivered to the contract holder at least 45 days before the premium is due. During the grace period the contract shall continue in force".

(2) Any additional provisions related to the grace period shall be expressly stated in the group dental benefit contract, subject to the following limitations:
(a) Unless a dental plan organization receives a notice of the contract holder's intention to terminate the policy before the end of the grace period, the dental plan organization may collect premium for the 30-day grace period;

(b) If a dental plan organization receives a notice of intention to terminate the group dental benefit contract during the grace period, the dental plan organization may collect premium for the period beginning on the first day of the grace period until the date on which notice is received or the date of termination stated in the notice, whichever is later; and

(c) If premium for the 30-day grace period is paid after the grace period ends, a dental plan organization may charge interest for the premium for the group dental benefit contract, but:
(i) Interest may not begin to accrue during the 30-day grace period; and

(ii) The interest rate charged may not exceed an effective rate of 6 percent per year.

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