North Carolina law provides individuals with some rights to purchase a conversion policy when certain events occur. A conversion policy is an individual policy sold by the insurer that provided your prior coverage. Conversion policies may be more expensive and not cover the same benefits as your prior policy.

When am I eligible for conversion coverage?

· In North Carolina, if you have three months of coverage through an employer’s fully insured group health plan and you leave that job, you may be eligible to buy conversion coverage. This is an individual policy you get from the company that insured your employer’s group plan.

· You must apply for conversion coverage and pay your first premium within 31 days of losing prior coverage.

· Conversion rights are also available to dependents covered under the employer’s group plan.

What does a conversion policy cover?

· You must be given a choice of three conversion policies. Conversion policies may not provide the same level of coverage as your prior employer sponsored group coverage.

What about coverage for my pre-existing condition?

· Conversion policies cannot impose new pre-existing condition exclusion periods. However, if you were in the middle of a pre-existing condition exclusion period under your group health plan when it ended, you will have to finish it.

How much can I be charged for conversion coverage?

· Conversion policies may cost more than your previous group plan. There is no limit on what you can be charged for conversion policies. These policies may cost more than your prior group coverage.

Can my conversion policy be canceled?

· Your coverage cannot be canceled because you get sick. This is called guaranteed renewability. You have this protection provided you pay premiums, do not defraud the company, and are not eligible for substantially similar coverage under Medicare or other federal or state law or have other insurance which together with the conversion policy would be considered over-insurance.