(a)  A contract provided for by this chapter shall not be required to cover a preexisting medical condition of the resident during the first 10 months the resident is covered by catastrophic health insurance provided under this chapter. Charges for a preexisting condition shall not apply toward the deductible during the first 10 months of coverage. Charges for other conditions during that initial period shall apply toward the deductible.

(b)  The contract shall also prohibit the insurer from discriminating against prospective insureds in their underwriting practices on the basis of demographic factors, such as age, or preexisting medical conditions.

Terms Used In California Health and Safety Code 123195

  • Catastrophic health insurance: means a supplementary insurance contract that indemnifies a California resident for medical expenses, including at least the costs of the basic health care services that result from an illness, injury, or disease, and that are greater than fifty thousand dollars ($50,000), subject to a lifetime benefit limit of one million dollars ($1,000,000). See California Health and Safety Code 123180
  • Contract: A legal written agreement that becomes binding when signed.
  • Insurer: as used in this chapter includes a disability insurer that covers hospital, medical, or surgical expenses, and a nonprofit hospital service plan. See California Health and Safety Code 123180
  • Resident: means any individual who lives in California for at least 90 consecutive days. See California Health and Safety Code 123180

(Added by Stats. 1995, Ch. 415, Sec. 8. Effective January 1, 1996.)

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