Page:United States Statutes at Large Volume 102 Part 1.djvu/783

 PUBLIC LAW 100-360—JULY 1, 1988

102 STAT. 745

"(B) on or after January 1, 1989, the policy is deemed to be in compliance with this section if the insurer issuing the policy complies with the NAIC Model Transition Regulation before the date of the sale of the policy. "(2) In paragraph (1), the term 'qualifying medicare supplemental policy' means a medicare supplemental policy— "(A) issued in a State which— "(i) has not adopted standards equal to or more stringent than the NAIC Model Transition Regulation by January 1, 1989, and "(ii) has not adopted standards equal to or more stringent than the amended NAIC Model Regulation (or Federal model standards) by January 1, 1989; and "(B) which has been issued in compliance with this section (as in effect on June 1, 1988). "(3)(A) The date specified in this paragraph is the earlier of— "(i) the first date a State adopts, after January 1, 1989, standards equal to or more stringent than the NAIC Model Transition Regulation or equal to or more stringent than the amended NAIC Model Regulation (or Federal model standards), as the case may be, or "(ii) the later of (1) the date specified in subsection (k)(l)(B) or (k)(2)(B) (as the case may be), or (II) the date specified in subparagraph (B). "(B) In the case of a State which the Secretary identifies as— "(i) requiring State legislation (other than l^islation appropriating funds) in order for medicare supplemental policies to meet standards described in subparagraph (A)(i), but "(ii) having a legislature which is not scheduled to meet in 1989 in a legislative session in which such l^islation may be considered, the date specified in this subparagraph is the first day of the first calendar quarter beginning after the close of the first l^islative session of the State l^islature that b^ins on or after January 1, 1989, and in which legislation described in clause (i) may be considered. For purposes of the previous sentence, in the case of a State that has a 2-year legislative session, each year of such session shall be deemed to be a separate regular session of the State l^islature. "(4) In the case of a medicare supplemental policy in effect on January 1, 1989, and offered in a State which, as of such date— (A) has adopted standards equal to or more stringent than the amended NAIC Model Regulation (or Federal model standards), but "(B) does not have in effect standards equal to or more stringent than the NAIC Model Transition R^ulation (or otherwise requiring notice substantially the same as the notice required in section 5.B. of such Regulation), the policy shall not be deemed to meet the standards in subsection (c) unless each individual who is entitled to benefits under this title and is a policyholder under such policy on January 1, 1989, is sent such a notice in any appropriate form by not later than January 31, 1989, that explains— "(A) the improved benefits under this title contained in the Medicare Catastrophic Coverage Act of 1988, and "(B) how these improvements affect the benefits contained in the policies and the premium for the policy.

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