Minnesota Administrative Rules
Agency 120 - Commerce Department
Chapter 2755 - GROUP INSURANCE COVERAGE REPLACEMENT
Part 2755.0500 - LIABILITY OF SUCCEEDING CARRIER

Subpart 1. Coverage under succeeding carrier's plan.

Each individual who is eligible under the succeeding carrier's plan, with respect to provisions regarding class eligibility, activity at work, and nonconfinement, shall be covered by the succeeding carrier's plan of benefits as of the effective date of that plan.

Subp. 2. Coverage for individuals not eligible under subpart 1.

Each individual who is not eligible for coverage in accordance with subpart 1 shall nevertheless be covered by the succeeding carrier in accordance with the following rules, provided that such individual (including an individual who has exercised the option for extension of benefits pursuant to Minnesota Statutes, sections 62A.148 and 62A.17) was validly covered under the prior plan on the date it was discontinued and such individual is a member of a class of individuals otherwise eligible for coverage under the succeeding carrier's plan.

Subp. 3. Preexisting condition limitations.

Each individual subject to a preexisting condition limitation contained in the succeeding carrier's plan shall nevertheless be covered by the succeeding carrier, provided that such individual was validly covered under the prior plan on the date it was discontinued. The minimum level of benefits which shall be provided by the succeeding carrier for a preexisting condition shall be the lesser of the benefits of the new plan determined without regard to the preexisting condition limitation, or the benefits of the prior plan.

Subp. 4. Deductible or waiting period.

In applying any deductible or waiting period in its plan, the succeeding carrier shall give credit for the full or partial satisfaction of the same or similar provisions under the prior plan. In the case of deductible provisions, the credit shall apply for the same or overlapping benefit periods, to the extent the same expenses are recognized under the terms of the succeeding carrier's plan and are subject to a similar deductible provision.

Subp. 5. Statement of benefits available.

In any situation where a determination of the prior carrier's benefits is required by the succeeding carrier, at the succeeding carrier's request the prior carrier shall furnish a statement of the benefits available and other pertinent information sufficient to permit the succeeding carrier to verify or determine benefits.

Subp. 6. Controlling terms.

Benefits of the prior plan shall be determined in accordance with the definitions, conditions, and covered expense provisions of the prior plan rather than those of the succeeding plan.