An Act concerning health insurance; relating to extension of payment of benefits; amending
K.S.A. 40-2254 and repealing the existing section.
Be it enacted by the Legislature of the State of Kansas:

      Section  1. K.S.A. 40-2254 is hereby amended to read as follows: 40-
2254. Every issuer of a group policy and certificate of accident and sick-
ness insurance providing inpatient hospital, medical-surgical benefits is-
sued or renewed within this state or issued or renewed outside this state
covering residents within this state shall:

      (a) Contain Include in its contracts a provision extending payment of
such benefits until discharged or for a period not less than 31 days fol-
lowing the expiration date of the policy, whichever is earlier, for covered
insureds confined in a hospital on the date of termination; and

      (b) not fail to enroll in a replacement group policy, contract or cer-
tificate without any gap in coverage any individual who is confined to a
hospital or otherwise disabled at the time such individual's prior group
policy, contract or certificate terminates;

      (c) provide that coverage payment of benefits under any subsequent
replacement policy, contract or certificate that is intended to afford con-
tinuous coverage will commence immediately following expiration of any
prior policy, contract or certificate with respect to benefits not paid or
payable under subsection (a).

 Sec.  2. K.S.A. 40-2254 is hereby repealed.
 Sec.  3. This act shall take effect and be in force from and after its
publication in the statute book.

Approved March 27, 2001.