North Carolina § 58-51-25 - Policy coverage to continue as to children with an intellectual or physical disability; or dependent students on medically necessary leave of absence.

§ 58-51-25. Policy coverage to continue as to children with an intellectual or physical disability; or dependent students on medically necessary leave of absence.

An individual or group accident and health insurance policy, hospital service plan policy, or medical service plan policy that provides that coverage of a dependent child shall terminate upon attainment of the limiting age for dependent children specified in the policy or contract, shall also provide in substance that attainment of the limiting age shall not operate or terminate the coverage of the child while the child is and continues to be (i) incapable of self-sustaining employment by reason of an intellectual or physical disability; and (ii) chiefly dependent upon the policyholder or subscriber for support and maintenance. The proof of such incapacity and dependency shall be furnished to the insurer, hospital service plan corporation, or medical service plan corporation by the policyholder or subscriber within 31 days of the child's attainment of the limiting age and subsequently as may be required by the insurer or corporation, but not more frequently than annually after the child's attainment of the limiting age. All health benefit plans, as defined in G.S. 58-3-167, that provide that coverage of a dependent child shall terminate upon a change in enrollment of the child in a postsecondary educational institution shall provide for the continued eligibility of the dependent child during a medically necessary leave of absence from the postsecondary educational institution in accordance with all applicable requirements of Public Law 110-381, known as Michelle's Law. History (1969, c. 745, s. 1; 1971, c. 1126, s. 1; 2009-382, s. 17; 2018-47, s. 7(a).) Editor's Note. - Session Laws 2018-47, s. 15, provides: "This act does not affect the coverage, eligibility, rights, responsibilities, or provision of State or federal services or benefits for individuals who have been diagnosed with mental retardation and whose diagnosis has not been changed to a diagnosis of intellectual disability." Effect of Amendments. - Session Laws 2009-382, s. 17, effective October 1, 2009, added "coverage of dependent students on medically necessary leave of absence" at the end of the section heading; designated the previously existing provisions as subsection (a); in subsection (a), substituted "hospital service plan policy, or medical service plan policy that" for "hospital service policy, or medical service plan policy, delivered or issued for delivery in this State after July 1, 1969, which" near the beginning; and added subsection (b). Session Laws 2018-47, s. 7(a), effective June 22, 2018, substituted "children with an intellectual or physical disability; or" for "mentally retarded or physically handicapped children; coverage of" in the section catchline; and rewrote subsection (a).