509B.5 Notice of termination of membership or modification of coverage. 1. Employers or group policyholders shall notify all employees or members of their continuation rights within ten days of termination of employment or membership. Thenotice shall be in writing and delivered in person or mailed to the person’s last knownaddress. However, continuation rights shall not be denied because of failure to provideproper notice. After receiving proper notice the employee or member may request andshall receive continuation coverage in accordance with this chapter within ten days of therequest, notwithstanding any other time limitation provided by this chapter. Notification asprovided in this section supersedes section 515.125 as that section relates to accident andhealth insurance. 2. If an employer or group policyholder terminates or substantially modifies an agreement to provide accident or health insurance for employees or members or if accident or healthinsurance for employees or members is terminated for failure to pay premiums or for anotherreason, the employer or group policyholder shall notify the employees or members, includingpersons being continued under the policy’s r members is terminated for failure to pay premiums or for anotherreason, the employer or group policyholder shall notify the employees or members, includingpersons being continued under the policy’s continuation provisions, of the termination orsubstantial modification of their coverage. The notice shall be in writing and delivered inperson to the entitled persons or mailed to their last known addresses at least ten days priorto the termination or substantial modification of the accident or health insurance coverage.The employer or group policyholder is solely liable for benefits, including extended benefits,other than extended benefits for which the insurer is liable in accordance with the provisionsof the group policy, which would have been payable had the accident or health insuranceremained in force or not been terminated or substantially modified during the period of timefollowing the termination or substantial modification until the person entitled to notice isgiven notice by the employer or group policyholder as required by this subsection. 3. The employer or group policyholder is also solely liable for benefits, including extended benefits, which would have been payable the employer or group policyholder as required by this subsection. 3. The employer or group policyholder is also solely liable for benefits, including extended benefits, which would have been payable had the accident or health insurance been in forceand the employees or members been covered during the period of time the employer or grouppolicyholder failed to implement the plan for accident or health insurance which the employeror group policyholder had agreed to provide, until the employer or group policyholder givesnotice of its failure or inability to provide the agreed plan. The notice shall be in writing anddelivered in person to the employees or members or mailed to their last known addresses. 4. The employer or group policyholder is also solely liable for benefits, including extended benefits, which would have been payable had the accident or health insurancebeen in force and the employees or members been covered by the accident or healthinsurance during a period of time for which the employer or group policyholder hascollected contributions through payroll, withholding, or otherwise, but has failed to enrollthe employees or members, unless the employer or group time for which the employer or group policyholder hascollected contributions through payroll, withholding, or otherwise, but has failed to enrollthe employees or members, unless the employer or group policyholder has given actualnotice that enrollment in the plan will not become effective until a later date or until theemployee’s or member’s application for enrollment has been approved. 86 Acts, ch 1124, §5; 2006 Acts, ch 1117, §37; 2007 Acts, ch 152, §55Referred to in §509B.3, 514B.17 Sat Dec 23 00:42:05 2023 Iowa Code 2024, Section 509B.5 (17, 0)
Iowa Legal Code