In this subtitle the following words have the meanings indicated. “Blanket health insurance” means the form of health insurance described in § 15-305 of this subtitle. “Group health insurance” means the form of health insurance described in § 15-302 of this subtitle.

Group health insurance is health insurance issued to persons specified in this section to cover the groups of individuals described in this section, with or without their dependents or family members, or to cover their dependents or family members. In this subsection, “employee” may include: an officer or manager of the employer; a sole proprietor if the employer is a sole proprietorship; a partner if the employer is a partnership; an officer, manager, or employee of a corporation that is an affiliate or subsidiary of the employer; a sole proprietor, partner, or employee of a sole proprietorship or partnership if the businesses of the employer and sole proprietorship or partnership are under common control through stock ownership, contract, or otherwise; a retired employee; an elected or appointed official of a public body, but only if the policy is issued to insure employees of the public body; and a trustee of the fund, employee of the trustee, or both if the duties of the trustee or employee are connected principally with the trusteeship. “Employee” does not include a director of a corporate employer unless the director is otherwise eligible as an employee of the corporation by performing services other than the usual duties of a director. A policy of group health insurance may be issued to an employer or the trustees of a fund established by an employer to cover employees of the employer for the benefit of persons other than the employer. The employer or trustees to which the policy is issued are deemed the policyholder. In this subsection, “employee” may include a retired employee. A policy of group health insurance may be issued to an association, including a labor union, that has a constitution and bylaws and that is organized and maintained in good faith for purposes other than that of obtaining insurance, to cover members, employees, or employees of members of the association for the benefit of persons other than the association or its officers or trustees. In this subsection, “employee” may include: an officer or manager of the employer; a sole proprietor if the employer is a sole proprietorship; a partner if the employer is a partnership; a retired employee; and a trustee of the fund, employee of the trustee, or both if the duties of the trustee or employee are connected principally with the trusteeship. A policy of group health insurance may be issued to the trustees of a fund established by two or more employers in the same or related industry, by one or more labor unions, by one or more employers and one or more labor unions, or by an association described in subsection (b) of this section, to cover employees of the employers, members of the unions, members of the association, or employees of members of the association, for the benefit of persons other than the employers, unions, or association. The trustees to which the policy is issued are deemed the policyholder. A policy of group health insurance may be issued to a person to which a policy of group life insurance may be issued or delivered in the State, to cover a class or classes of individuals eligible for insurance under the group life policy. A policy of group health insurance may be issued to cover any other substantially similar group that, in the discretion of the Commissioner, may be eligible for group health insurance.

Except as provided in §§ 14–205.2 and 14–205.3 of this article, and subject to subsection (b) of this section, on request of the policyholder, a policy of group health insurance may contain a provision that all or part of the benefits provided by the policy for hospital, nursing, medical, or surgical services, at the insurer’s option, may be paid directly to the hospital or person that provides the services. A policy of group health insurance may not require that hospital, nursing, medical, or surgical services be provided by a particular hospital or person. A direct payment made under subsection (a) of this section discharges the insurer’s obligation with respect to the amount paid.

Blanket health insurance is health insurance issued to or in the name of persons specified in this section to cover the groups of individuals described in this section. The person to which or in the name of which a policy or contract is issued is deemed the policyholder. A policy or contract of blanket health insurance may be issued to a common carrier or an operator, owner, or lessee of a means of transportation, to cover all individuals or all individuals of a class who may become passengers on the common carrier or means of transportation. A policy or contract of blanket health insurance may be issued to an employer, to cover all employees, dependents, or guests who are defined by reference to specific hazards that are incident to the activities or operations of the employer or a class of employees, dependents, or guests similarly defined. A policy or contract of blanket health insurance may be issued to a school or other institution of learning, a camp or its sponsor, or the head or principal of a school, other institution of learning, or camp, to cover students, campers, supervisors, or employees. A policy or contract of blanket health insurance may be issued in the name of a religious, charitable, recreational, educational, or civic organization, to cover participants in activities sponsored by the organization. A policy or contract of blanket health insurance may be issued to a sports team or its sponsors, to cover members, officials, and supervisors. A policy or contract of blanket health insurance may be issued in the name of a volunteer fire department, first aid group, other similar volunteer group, or agency with jurisdiction over a volunteer fire department, first aid group, or other similar volunteer group, to cover all members of the volunteer fire department or similar volunteer group. A policy or contract of blanket health insurance may be issued to cover any other risk, class of risks, or both that, in the discretion of the Commissioner, may be eligible for blanket health insurance.

An insurer that is authorized to issue policies of health insurance in the State may issue blanket health insurance. A policy of blanket health insurance may not be issued or delivered in the State unless a copy of the form for the policy is filed with the Commissioner in accordance with § 12-203 of this article.

An individual who is covered under a policy or contract of blanket health insurance may not be required to complete an individual application. An insurer need not provide a certificate to each individual covered under a policy of blanket health insurance.

Except as provided in subsections (b) through (d) of this section, benefits under a policy of blanket health insurance are payable to the insured, beneficiaries designated by the insured, or estate of the insured. If the insured is under the age of 18 years or is mentally incompetent, benefits under a policy of blanket health insurance may be made payable to the insured’s parents, guardian, or other person who supports the insured. If the employer has paid the entire cost of a policy of blanket health insurance, benefits under the policy may be made payable to the employer. Subject to paragraph (2) of this subsection, a policy of blanket health insurance may contain a provision that all or part of the benefits provided by the policy for hospital, nursing, medical, or surgical services, at the insurer’s option, may be paid directly to the hospital or person that provides the services. A policy of blanket health insurance may not require that hospital, nursing, medical, or surgical services be provided by a particular hospital or person. A direct payment made under paragraph (1) of this subsection discharges the insurer’s obligation with respect to the amount paid.

A person may not solicit coverage in the State under a policy of group health insurance or blanket health insurance issued in another jurisdiction without the prior written approval of the Commissioner, unless the type of group to be covered conforms substantially to one of the groups described in § 15-302 or § 15-305 of this subtitle.