Sec. 846.206.  RENEWABILITY OF COVERAGE;  CANCELLATION.  (a)  Except as provided by Section 846.207, a multiple employer welfare arrangement shall renew the health benefit plan, at the employer's option, unless:
(1)  a contribution has not been paid as required by the terms of the plan;
(2)  the employer has committed fraud or has intentionally misrepresented a material fact;
(3)  the employer has not complied with the terms of the health benefit plan document;
(4)  the health benefit plan is ceasing to offer any coverage in a geographic area;  or
(5)  there has been a failure to meet the terms of an applicable collective bargaining agreement or other agreement requiring or authorizing contributions to the health benefit plan, including a failure to renew the agreement or to employ employees covered by the agreement.
(b)  A multiple employer welfare arrangement may refuse to renew the coverage of a participating employee or dependent for fraud or intentional misrepresentation of a material fact by that person.
(c)  A multiple employer welfare arrangement may not cancel a health benefit plan except for a reason specified for refusal to renew under Subsection (a).  An arrangement may not cancel the coverage of a participating employee or dependent except for a reason specified for refusal to renew under Subsection (b).
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.