Section 15Part 0 —
Termination of contract
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An approved insurer shall not terminate, fail or refuse to renew a standard health insurance contract except where — (a) the premiums under the contract are thirty days or more in arrears, in which case the contract shall terminate on the last day of the month for which premiums were fully paid; (b) the contract was obtained — (i) by non-disclosure of a material fact; or (ii) by representation of a fact that was false in some material particular; or (c) the employer has given written notice to the approved insurer that — (i) a new contract of health insurance has been effected with an approved insurer; or (ii) the employer’s business has been taken over by or amalgamated with another employer.
A standard health insurance contract terminates on the first day of the month next following the date of termination of employment of an employee; but if that employee does not become compulsorily insured with any other employer, cover under the contract shall continue for a period of three months from the date of termination of employment or until that person becomes employed, whichever is earlier.
An employee shall be liable to pay the total cost of the premiums payable under a contract of health insurance which has been continued pursuant to subsection (2).
An employer who, having been notified by that person’s former employee that that person is not employed and that that person is not compulsorily insured, fails or refuses to extend the cover under the contract as provided in subsection (2) commits an offence and is liable on summary conviction to a fine of thirty thousand dollars.