13.11 Replacement of Group Policies

When replacing a group policy, the agent should provide a clear comparison of benefits between the current plan and the proposed coverage. If a new carrier replaces hospital, medical, or surgical benefits within 60 days of the prior policy’s termination, it must cover all employees and dependents who were covered—or eligible for coverage—under the previous plan as of the termination date.

Although insurers are expected to coordinate these credits, HIPAA privacy rules may limit their ability to share information. As a result, employees should maintain records of their health care expenses and provide this information to new insurers when needed.