Section 16-5-4 - Termination of agreement, or employment or membership Upon the termination of a mass merchandising agreement, or upon the termination of an insured's employment or membership, the insured employee or member shall have the option to continue to be insured for a period of one year, subject to the following:
(1) The period of one year shall start from the date of termination of the agreement, employment or membership;(2) The insured employee or member shall exercise the employee or member's option and pay the applicable premium within thirty days from the date of termination;(3) The terms, conditions, and coverages for the one year period are those that are effective on the date of termination and shall not be more restrictive than those contained in the mass merchandising agreement, the group policy, or the individual policy in force immediately prior to the date of termination; and(4) The applicable premium shall be calculated on the basis of the premium which was in effect on the date of termination for the territory, rating classifications, and any other rating factors applicable to the insured employee or member.[Eff 6/22/81] (Auth: HRS §§ 431:2-201, 431:12-116) (Imp: HRS §§ 431:12-105, 431:12-116)