26-19-305. Renewability of coverage.
(a) A health benefit plan subject to this act shall be renewable with respect to all eligible employees or dependents at the option of the employer except in the following cases:
(i) Nonpayment of the required premiums;
(ii) Fraud or misrepresentation of the employer or, with respect to coverage of individual insureds, the insureds or their representatives;
(iii) Noncompliance with the carrier's minimum participation requirements;
(iv) Noncompliance with the carrier's employer contribution requirements;
(v) Repeated misuse of a provider network provision;
(vi) The carrier elects not to renew all of its health benefit plans issued to small employers in this state. In such a case, the carrier shall:
(A) Provide advanced notice of its decision under this paragraph to the commissioner in each state in which it is licensed; and
(B) Provide notice of the decision not to renew coverage to all affected health benefit plans and to the commissioner in each state in which an affected insured individual is known to reside at least one hundred eighty (180) days prior to the nonrenewal of any health benefit plans by the carrier. Notice to the commissioner under this subparagraph shall be provided at least three (3) working days prior to the notice to the affected health plans.
(vii) The commissioner finds that the continuation of the coverage would:
(A) Not be in the best interests of the policyholders or certificate holders; or
(B) Impair the carrier's ability to meet its contractual obligations.
(b) If the commissioner finds that the carrier may elect not to renew coverage under paragraph (vii) of subsection (a) of this section he shall assist affected small employers in finding replacement coverage.
(c) A carrier that elects not to renew a health benefit plan under paragraph (vi) of subsection (a) of this section shall be prohibited from writing new business in the small employer market for a period of five (5) years from the date of notice to the commissioner.
(d) In the case of a health maintenance organization doing business in the small employer market in one (1) established geographic service area of the state, the provisions set forth in this section shall apply to the health maintenance organization's operations in that service area.