(a) All individual and group health insurance policies providing coverage on an expense
incurred basis, individual and group service or indemnity type contracts issued by
a profit or nonprofit corporation and all contracts issued by health maintenance organizations
organized or authorized to transact business in this state which provides coverage
for a family member of the enrollee, insured or subscriber shall, as to such family
members' coverage, also provide that the health insurance benefits applicable for
children shall be payable with respect to a child in the custody of the commissioner
of juvenile justice.
(b) The contract issued by a health maintenance organization may provide that the
benefits required pursuant to this subsection shall be covered benefits only if the
services are rendered by a provider who is designated by and affiliated with the health
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