(a) Every health care service plan offering plan contracts to individuals shall, in addition to complying with the provisions of this chapter and the rules adopted thereunder, comply with the provisions of this article.

(b) For the purposes of determining eligibility for small employer coverage, a sole proprietor and the sole proprietor’s spouse are not employees with respect to a sole proprietorship that consists only of the sole proprietor and the sole proprietor’s spouse. A partner and a partner’s spouse are not employees of a partnership that consists solely of partners and their spouses. Employer group health care service plans shall not be issued, marketed, or sold to a sole proprietorship or partnership without employees directly or indirectly through any arrangement. Only individual health care service plans shall be sold to any entity without employees.

Terms Used In California Health and Safety Code 1399.802

  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
  • plan: refers to health care service plans and specialized health care service plans. See California Health and Safety Code 1345
  • Spouse: includes "registered domestic partner" as required by §. See California Health and Safety Code 12.2

(Amended by Stats. 2018, Ch. 700, Sec. 5. (SB 1375) Effective January 1, 2019.)