1. Any notice of discontinuance so given by the carrier shall include a request to
the group policyholder or other entity involved to notify employees covered under
the policy or contract of the date as of which the group policy or contract will discontinue
and to advise that unless otherwise provided in the policy or contract, the carrier
shall not be liable for claims for losses incurred after such date. Such notice of discontinuance shall also advise, in any instance in which the plan
involves employee contributions, that if the policyholder or other entity continues
to collect contributions for the coverage beyond the date of discontinuance, the policyholder
or other entity may be held solely liable for the benefits with respect to which the
contributions have been collected.
2. The carrier will prepare and furnish to the policyholder or other entity at the
same time a supply of a notice form to be distributed to the employees or members
concerned indicating such discontinuance and the effective date thereof, and urging
the employees or members to refer to their certificates or contracts in order to determine
what rights, if any, are available to them upon such discontinuance.
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