SF 4148

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/05/2026 09:46 a.m.

A bill for an act
relating to health insurance; modifying guaranteed issue requirements for Medicare
supplement policies; requiring reinstatement of Medicare supplement policies for
terminations due to cognitive impairment or functional incapacity; amending
Minnesota Statutes 2024, section 62A.31, subdivision 1n, by adding a subdivision;
Minnesota Statutes 2025 Supplement, section 62A.31, subdivisions 1b, 1f, 1h, 1r,
1u.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2025 Supplement, section 62A.31, subdivision 1b, is
amended to read:

Subd. 1b.

Preexisting condition coverage.

(a) The policy must cover preexisting
conditions during the first six months of coverage if the insured was not diagnosed or treated
for the particular condition during the 90 days immediately preceding the effective date of
coverage.

(b) The policy must cover preexisting conditions if the insured meets the deleted text begin requirements deleted text end
new text begin conditions for a premium increase new text end under subdivision 1r, paragraph deleted text begin (c) deleted text end new text begin (d) new text end .

Sec. 2.

Minnesota Statutes 2025 Supplement, section 62A.31, subdivision 1f, is amended
to read:

Subd. 1f.

Suspension based on entitlement to medical assistance.

(a) The policy or
certificate must provide that benefits and premiums under the policy or certificate shall be
suspended for any period that may be provided by federal regulation at the request of the
policyholder or certificate holder for the period, not to exceed 24 months, in which the
policyholder or certificate holder has applied for and is determined to be entitled to medical
assistance under title XIX of the Social Security Act, but only if the policyholder or certificate
holder notifies the issuer of the policy or certificate within 90 days after the date the
individual becomes entitled to this assistance.

(b) If suspension occurs and if the policyholder or certificate holder loses entitlement
to this medical assistance, the policy or certificate shall be automatically reinstated, effective
as of the date of termination of this entitlement, if the policyholder or certificate holder
provides notice of loss of the entitlement within 90 days after the date of the loss and pays
the premium attributable to the period, effective as of the date of termination of entitlement.

(c) The policy must provide that upon reinstatement (1) there is no waiting period if the
deleted text begin enrollee deleted text end new text begin policyholder or certificate holder new text end meets the deleted text begin requirements deleted text end new text begin conditions for a premium
increase new text end under subdivision 1r, paragraph deleted text begin (c) deleted text end new text begin (d) new text end , with respect to treatment of preexisting
conditions, (2) coverage is provided which is substantially equivalent to coverage in effect
before the date of the suspension. If the suspended policy provided coverage for outpatient
prescription drugs, reinstitution of the policy for Medicare Part D enrollees must be without
coverage for outpatient prescription drugs and must otherwise provide coverage substantially
equivalent to the coverage in effect before the date of suspension, and (3) premiums are
classified on terms that are at least as favorable to the policyholder or certificate holder as
the premium classification terms that would have applied to the policyholder or certificate
holder had coverage not been suspended.

Sec. 3.

Minnesota Statutes 2025 Supplement, section 62A.31, subdivision 1h, is amended
to read:

Subd. 1h.

Limitations on denials, conditions, and pricing of coverage.

(a) No health
carrier issuing Medicare-related coverage in this state may impose preexisting condition
limitations or otherwise deny or condition the issuance or effectiveness of any such coverage
available for sale in this state, nor may it discriminate in the pricing of such coverage,
because of the health status, claims experience, receipt of health care, medical condition,
or age of an applicant where an application for such coverage is submitted:

(1) prior to or during the six-month period beginning with the first day of the month in
which an individual first enrolled for benefits under Medicare Part B; or

(2) during the open enrollment period if the applicant:

(i) deleted text begin is age 65 to 70 and the applicant deleted text end is applying for coverage during the open enrollment
period for the first time; and

(ii) meets the deleted text begin requirements deleted text end new text begin conditions for a premium increase new text end under subdivision 1r,
paragraph deleted text begin (c) deleted text end new text begin (d) new text end .

deleted text begin (b) Notwithstanding paragraph (a), the premium increases permitted under subdivision
1r are allowed.
deleted text end

deleted text begin (c) deleted text end new text begin (b) new text end This subdivision applies to each Medicare-related coverage offered by a health
carrier regardless of whether the individual has attained the age of 65 years.

deleted text begin (d) deleted text end new text begin (c) new text end If an individual who is enrolled in Medicare Part B due to disability status is
involuntarily disenrolled due to loss of disability status, the individual is eligible for another
six-month enrollment period provided under this subdivision beginning the first day of the
month in which the individual later becomes eligible for and enrolls again in Medicare Part
B and during the open enrollment period. An individual who is or was previously enrolled
in Medicare Part B due to disability status is eligible for another six-month enrollment
period under this subdivision beginning the first day of the month in which the individual
has attained the age of 65 years and either maintains enrollment in, or enrolls again in,
Medicare Part B. If an individual enrolled in Medicare Part B voluntarily disenrolls from
Medicare Part B because the individual becomes enrolled under an employee welfare benefit
plan, the individual is eligible for another six-month enrollment period, as provided in this
subdivision, beginning the first day of the month in which the individual later becomes
eligible for and enrolls again in Medicare Part B.

Sec. 4.

Minnesota Statutes 2024, section 62A.31, subdivision 1n, is amended to read:

Subd. 1n.

Termination of coverage.

(a) Termination by an issuer of a Medicare
supplement policy or certificate shall be without prejudice to any continuous loss that began
while the policy or certificate was in force, but the extension of benefits beyond the period
during which the policy or certificate was in force may be conditioned on the continuous
total disability of the insured, limited to the duration of the policy or certificate benefit
period, if any, or payment of the maximum benefits. The extension of benefits does not
apply when the termination is based on fraud, misrepresentation, or nonpayment of premium.
Receipt of Medicare Part D benefits is not considered in determining a continuous loss.

(b) An issuer may discontinue the availability of a policy form or certificate form if the
issuer provides to the commissioner in writing its decision at least 30 days before
discontinuing the availability of the form of the policy or certificate. An issuer that
discontinues the availability of a policy form or certificate form shall not file for approval
a new policy form or certificate form of the same type for the same Medicare supplement
benefit plan as the discontinued form for five years after the issuer provides notice to the
commissioner of the discontinuance. This period of ineligibility to file a form for approval
may be reduced if the commissioner determines that a shorter period is appropriate. The
sale or other transfer of Medicare supplement business to another issuer shall be considered
a discontinuance for the purposes of this section and section 62A.3099. A change in the
rating structure or methodology shall be considered a discontinuance under this section and
section 62A.3099 unless the issuer complies with the following requirements:

(1) the issuer provides an actuarial memorandum, in a form and manner prescribed by
the commissioner, describing the manner in which the revised rating methodology and
resulting rates differ from the existing rating methodology and resulting rates; and

(2) the issuer does not subsequently put into effect a change of rates or rating factors
that would cause the percentage differential between the discontinued and subsequent rates
as described in the actuarial memorandum to change. The commissioner may approve a
change to the differential that is in the public interest.

new text begin (c) A health carrier must reinstate a policy or certificate canceled, terminated, or lapsed
due to premium nonpayment if:
new text end

new text begin (1) within 90 days after cancellation, termination, or lapse, one of the following
individuals requests reinstatement:
new text end

new text begin (i) a policyholder or certificate holder;
new text end

new text begin (ii) a person authorized to act on the policyholder's or certificate holder's behalf; or
new text end

new text begin (iii) a dependent of the policyholder or certificate holder who is covered under the policy
or certificate; and
new text end

new text begin (2) the premium nonpayment was a result of the policyholder's or certificate holder's
cognitive impairment or functional incapacity.
new text end

new text begin (d) To determine whether the condition under paragraph (c), clause (2), is satisfied, a
health carrier may require medical evidence substantiating that the policyholder or certificate
holder suffered from cognitive impairment or functional incapacity at the time of cancellation,
termination, or lapse. The health carrier may require that medical evidence required under
this paragraph is provided at the policyholder's or certificate holder's expense.
new text end

new text begin (e) A policy or certificate reinstated under paragraph (c) must (1) cover any loss or claim
occurring on or after the date of the termination, cancellation, or lapse, and (2) be issued
without any evidence of insurability.
new text end

new text begin (f) Within 15 days after the date a request from a health carrier is received, a policyholder
or certificate holder of a policy or certificate reinstated under paragraph (c) must pay all
unpaid premiums from the date the last premium payment was paid, at the rate that would
have been in effect had the policy or certificate remained in force. If the unpaid premium
is not paid under this paragraph, the health carrier may decline to reinstate the policy or
certificate and the health carrier is not responsible for claims incurred after the initial date
of cancellation, termination, or lapse.
new text end

new text begin (g) If a health carrier denies a request for reinstatement under paragraph (c), the health
carrier must notify the policyholder or certificate holder and requesting individual under
paragraph (c), clause (1), that the policyholder or certificate holder and requesting individual
may request a hearing before the commissioner.
new text end

Sec. 5.

Minnesota Statutes 2025 Supplement, section 62A.31, subdivision 1r, is amended
to read:

Subd. 1r.

Community rate.

(a) Each health maintenance organization, health service
plan corporation, insurer, or fraternal benefit society that sells Medicare-related coverage
shall establish a separate community rate for that coverage. No Medicare-related coverage
may be offered, issued, sold, or renewed to a Minnesota resident, except at the community
rate required by this subdivision. The same community rate must apply to newly issued
coverage and to renewal coverage.

(b) For coverage that supplements Medicare and for the Part A rate calculation for plans
governed by section 1833 of the federal Social Security Act, United States Code, title 42,
section 1395, et seq., the community rate may take into account only the following factors:

(1) actuarially valid differences in benefit designs or provider networks;

(2) geographic variations in rates if preapproved by the commissioner of commerce; new text begin
and
new text end

(3) premium reductions in recognition of healthy lifestyle behaviors, including but not
limited to, refraining from the use of tobacco. Premium reductions must be actuarially valid
and must relate only to those healthy lifestyle behaviors that have a proven positive impact
on health. Factors used by the health carrier making this premium reduction must be filed
with and approved by the commissioner of commerce deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (4) deleted text end new text begin (c) Notwithstanding subdivision 1h, paragraph (a), new text end for coverage that supplements
Medicare, new text begin a health carrier may impose a onetime new text end premium deleted text begin increases deleted text end new text begin increase new text end on an individual
who enrolls in a Medicare supplement policy outside of the individual's initial enrollment
period in Medicare Part B. This paragraph does not apply to individuals who enroll in a
Medicare supplement policy pursuant to subdivision 1u, paragraph (b), clauses (1) to (8).
The deleted text begin increases deleted text end new text begin increase new text end described in paragraph deleted text begin (c) apply each year deleted text end new text begin (d) may be imposed only
on the first plan year in which new text end an individual is enrolled in deleted text begin a deleted text end new text begin the new text end Medicare supplement policy
and deleted text begin are deleted text end new text begin is new text end in addition to any standard increases in community rate.

deleted text begin (c) deleted text end new text begin (d) new text end The premium deleted text begin increases deleted text end new text begin increase new text end permitted under paragraph deleted text begin (b), clause (4): deleted text end new text begin (c)
new text end

deleted text begin (1) apply to deleted text end new text begin may be imposed only on new text end an individual deleted text begin age 65 to 70;
deleted text end

deleted text begin (2) apply to an individual deleted text end who enrolls in a Medicare supplement policy pursuant to
subdivision 1h, paragraph (a), clause (2) deleted text begin ; deleted text end new text begin . The premium increase under paragraph (c) must
not exceed ten percent.
new text end

deleted text begin (3) apply only the first time the individual enrolls;
deleted text end

deleted text begin (4) apply for the duration of time the policy is in force; and
deleted text end

deleted text begin (5) must equal:
deleted text end

deleted text begin (i) for an individual who enrolls during the 2026 open enrollment period, 15 percent;
deleted text end

deleted text begin (ii) for an individual who enrolls during the 2027 open enrollment period, 20 percent;
deleted text end

deleted text begin (iii) for an individual who enrolls during the 2028 open enrollment period, 25 percent;
deleted text end

deleted text begin (iv) for an individual who enrolls during the 2029 open enrollment period, 30 percent;
deleted text end

deleted text begin (v) for an individual who enrolls during the 2030 open enrollment period, 35 percent;
and
deleted text end

deleted text begin (vi) for an individual who enrolls during an open enrollment period after 2029, 35 percent.
deleted text end

deleted text begin If an individual age 65 to 70 enrolls in a subsequent Medicare supplement policy that is not
a replacement or renewal, the individual is not subject to the premium increases as described
in paragraph (b), clause (4).
deleted text end

Sec. 6.

Minnesota Statutes 2025 Supplement, section 62A.31, subdivision 1u, is amended
to read:

Subd. 1u.

Guaranteed issue for eligible persons.

(a)(1) Eligible persons are those
individuals described in paragraph (b) who seek to enroll under the policy during the period
specified in paragraph (c) and who submit evidence of the date of termination or
disenrollment described in paragraph (b), or of the date of Medicare Part D enrollment, with
the application for a Medicare supplement policy.

(2) With respect to eligible persons, an issuer shall not: deny or condition the issuance
or effectiveness of a Medicare supplement policy described in paragraph (c) that is offered
and is available for issuance to new enrollees by the issuer; discriminate in the pricing of
such a Medicare supplement policy because of health status, claims experience, receipt of
health care, medical condition, or age; or impose an exclusion of benefits based upon a
preexisting condition under such a Medicare supplement policy.

(b) An eligible person is an individual described in any of the following:

(1) the individual is enrolled under an employee welfare benefit plan that provides health
benefits that supplement the benefits under Medicare; and the plan terminates, or the plan
ceases to provide all such supplemental health benefits to the individual;

(2) the individual is enrolled with a Medicare Advantage organization under a Medicare
Advantage plan under Medicare Part C, and any of the following circumstances apply, or
the individual is 65 years of age or older and is enrolled with a Program of All-Inclusive
Care for the Elderly (PACE) provider under section 1894 of the federal Social Security Act,
and there are circumstances similar to those described in this clause that would permit
discontinuance of the individual's enrollment with the provider if the individual were enrolled
in a Medicare Advantage plan:

(i) the organization's or plan's certification under Medicare Part C has been terminated
or the organization has terminated or otherwise discontinued providing the plan in the area
in which the individual resides;

(ii) the individual is no longer eligible to elect the plan because of a change in the
individual's place of residence or other change in circumstances specified by the secretary,
but not including termination of the individual's enrollment on the basis described in section
1851(g)(3)(B) of the federal Social Security Act, United States Code, title 42, section
1395w-21(g)(3)(b) (where the individual has not paid premiums on a timely basis or has
engaged in disruptive behavior as specified in standards under section 1856 of the federal
Social Security Act, United States Code, title 42, section 1395w-26), or the plan is terminated
for all individuals within a residence area;

(iii) the individual demonstrates, in accordance with guidelines established by the
Secretary, that:

(A) the organization offering the plan substantially violated a material provision of the
organization's contract in relation to the individual, including the failure to provide an
enrollee on a timely basis medically necessary care for which benefits are available under
the plan or the failure to provide such covered care in accordance with applicable quality
standards; or

(B) the organization, or agent or other entity acting on the organization's behalf, materially
misrepresented the plan's provisions in marketing the plan to the individual; or

(iv) the individual meets such other exceptional conditions as the secretary may provide;

(3)(i) the individual is enrolled with:

(A) an eligible organization under a contract under section 1876 of the federal Social
Security Act, United States Code, title 42, section 1395mm (Medicare cost);

(B) a similar organization operating under demonstration project authority, effective for
periods before April 1, 1999;

(C) an organization under an agreement under section 1833(a)(1)(A) of the federal Social
Security Act, United States Code, title 42, section 1395l(a)(1)(A) (health care prepayment
plan); or

(D) an organization under a Medicare Select policy under section 62A.318 or the similar
law of another state; and

(ii) the enrollment ceases under the same circumstances that would permit discontinuance
of an individual's election of coverage under clause (2);

(4) the individual is enrolled under a Medicare supplement policy, and the enrollment
ceases because:

(i)(A) of the insolvency of the issuer or bankruptcy of the nonissuer organization; or

(B) of other involuntary termination of coverage or enrollment under the policy;

(ii) the issuer of the policy substantially violated a material provision of the policy; or

(iii) the issuer, or an agent or other entity acting on the issuer's behalf, materially
misrepresented the policy's provisions in marketing the policy to the individual;

(5)(i) the individual was enrolled under a Medicare supplement policy and terminates
that enrollment and subsequently enrolls, for the first time, with any Medicare Advantage
organization under a Medicare Advantage plan under Medicare Part C; any eligible
organization under a contract under section 1876 of the federal Social Security Act, United
States Code, title 42, section 1395mm (Medicare cost); any similar organization operating
under demonstration project authority; any PACE provider under section 1894 of the federal
Social Security Act, or a Medicare Select policy under section 62A.318 or the similar law
of another state; and

(ii) the subsequent enrollment under item (i) is terminated by the enrollee during any
period within the first 12 months of the subsequent enrollment during which the enrollee
is permitted to terminate the subsequent enrollment under section 1851(e) of the federal
Social Security Act;

(6) the individual, upon first enrolling for benefits under Medicare Part B, enrolls in a
Medicare Advantage plan under Medicare Part C, or with a PACE provider under section
1894 of the federal Social Security Act, and disenrolls from the plan by not later than 12
months after the effective date of enrollment;

(7) the individual enrolls in a Medicare Part D plan during the initial Part D enrollment
period, as defined under United States Code, title 42, section 1395ss(v)(6)(D), and, at the
time of enrollment in Part D, was enrolled under a Medicare supplement policy that covers
outpatient prescription drugs and the individual terminates enrollment in the Medicare
supplement policy and submits evidence of enrollment in Medicare Part D along with the
application for a policy described in paragraph (e), clause (4);

(8) the individual was enrolled in a state public program and is losing coverage due to
the unwinding of the Medicaid continuous enrollment conditions, as provided by Code of
Federal Regulations, title 45, section 155.420 (d)(9) and (d)(1), and Public Law 117-328,
section 5131 (2022); or

(9) the individual meets the requirements under subdivision 1r, paragraph deleted text begin (c) deleted text end new text begin (d) new text end , and
enrolls during the open enrollment period.

(c)(1) In the case of an individual described in paragraph (b), clause (1), the guaranteed
issue period begins on the later of: (i) the date the individual receives a notice of termination
or cessation of all supplemental health benefits or, if a notice is not received, notice that a
claim has been denied because of a termination or cessation; or (ii) the date that the applicable
coverage terminates or ceases; and ends 63 days after the later of those two dates.

(2) In the case of an individual described in paragraph (b), clause (2), (3), (5), or (6),
whose enrollment is terminated involuntarily, the guaranteed issue period begins on the
date that the individual receives a notice of termination and ends 63 days after the date the
applicable coverage is terminated.

(3) In the case of an individual described in paragraph (b), clause (4), item (i), the
guaranteed issue period begins on the earlier of: (i) the date that the individual receives a
notice of termination, a notice of the issuer's bankruptcy or insolvency, or other such similar
notice if any; and (ii) the date that the applicable coverage is terminated, and ends on the
date that is 63 days after the date the coverage is terminated.

(4) In the case of an individual described in paragraph (b), clause (2), (4), (5), or (6),
who disenrolls voluntarily, the guaranteed issue period begins on the date that is 60 days
before the effective date of the disenrollment and ends on the date that is 63 days after the
effective date.

(5) In the case of an individual described in paragraph (b), clause (7), the guaranteed
issue period begins on the date the individual receives notice pursuant to section
1882(v)(2)(B) of the Social Security Act from the Medicare supplement issuer during the
60-day period immediately preceding the initial Part D enrollment period and ends on the
date that is 63 days after the effective date of the individual's coverage under Medicare Part
D.

(6) In the case of an individual described in paragraph (b) but not described in this
paragraph, the guaranteed issue period begins on the effective date of disenrollment and
ends on the date that is 63 days after the effective date.

(7) For an individual described in paragraph (b), clause (9), the guarantee issue period
is the open enrollment period.

(d)(1) In the case of an individual described in paragraph (b), clause (5), or deemed to
be so described, pursuant to this paragraph, whose enrollment with an organization or
provider described in paragraph (b), clause (5), item (i), is involuntarily terminated within
the first 12 months of enrollment, and who, without an intervening enrollment, enrolls with
another such organization or provider, the subsequent enrollment is deemed to be an initial
enrollment described in paragraph (b), clause (5).

(2) In the case of an individual described in paragraph (b), clause (6), or deemed to be
so described, pursuant to this paragraph, whose enrollment with a plan or in a program
described in paragraph (b), clause (6), is involuntarily terminated within the first 12 months
of enrollment, and who, without an intervening enrollment, enrolls in another such plan or
program, the subsequent enrollment is deemed to be an initial enrollment described in
paragraph (b), clause (6).

(3) For purposes of paragraph (b), clauses (5) and (6), no enrollment of an individual
with an organization or provider described in paragraph (b), clause (5), item (i), or with a
plan or in a program described in paragraph (b), clause (6), may be deemed to be an initial
enrollment under this paragraph after the two-year period beginning on the date on which
the individual first enrolled with the organization, provider, plan, or program.

(e) The Medicare supplement policy to which eligible persons are entitled under:

(1) paragraph (b), clauses (1) to (4), is any Medicare supplement policy that has a benefit
package consisting of the basic Medicare supplement plan described in section 62A.316,
paragraph (a), plus any combination of the three optional riders described in section 62A.316,
paragraph (b), clauses (1) to (3), offered by any issuer;

(2) paragraph (b), clause (5), is the same Medicare supplement policy in which the
individual was most recently previously enrolled, if available from the same issuer, or, if
not so available, any policy described in clause (1) offered by any issuer, except that after
December 31, 2005, if the individual was most recently enrolled in a Medicare supplement
policy with an outpatient prescription drug benefit, a Medicare supplement policy to which
the individual is entitled under paragraph (b), clause (5), is:

(i) the policy available from the same issuer but modified to remove outpatient
prescription drug coverage; or

(ii) at the election of the policyholder, a policy described in clause (4), except that the
policy may be one that is offered and available for issuance to new enrollees that is offered
by any issuer;

(3) paragraph (b), clause (6), is any Medicare supplement policy offered by any issuer;

(4) paragraph (b), clause (7), is a Medicare supplement policy that has a benefit package
classified as a basic plan under section 62A.316 if the enrollee's existing Medicare
supplement policy is a basic plan or, if the enrollee's existing Medicare supplement policy
is an extended basic plan under section 62A.315, a basic or extended basic plan at the option
of the enrollee, provided that the policy is offered and is available for issuance to new
enrollees by the same issuer that issued the individual's Medicare supplement policy with
outpatient prescription drug coverage. The issuer must permit the enrollee to retain all
optional benefits contained in the enrollee's existing coverage, other than outpatient
prescription drugs, subject to the provision that the coverage be offered and available for
issuance to new enrollees by the same issuer.

(f)(1) At the time of an event described in paragraph (b), because of which an individual
loses coverage or benefits due to the termination of a contract or agreement, policy, or plan,
the organization that terminates the contract or agreement, the issuer terminating the policy,
or the administrator of the plan being terminated, respectively, shall notify the individual
of the individual's rights under this subdivision, and of the obligations of issuers of Medicare
supplement policies under paragraph (a). The notice must be communicated
contemporaneously with the notification of termination.

(2) At the time of an event described in paragraph (b), because of which an individual
ceases enrollment under a contract or agreement, policy, or plan, the organization that offers
the contract or agreement, regardless of the basis for the cessation of enrollment, the issuer
offering the policy, or the administrator of the plan, respectively, shall notify the individual
of the individual's rights under this subdivision, and of the obligations of issuers of Medicare
supplement policies under paragraph (a). The notice must be communicated within ten
working days of the issuer receiving notification of disenrollment.

(g) Reference in this subdivision to a situation in which, or to a basis upon which, an
individual's coverage has been terminated does not provide authority under the laws of this
state for the termination in that situation or upon that basis.

(h) An individual's rights under this subdivision are in addition to, and do not modify
or limit, the individual's rights under subdivision 1h.

Sec. 7.

Minnesota Statutes 2024, section 62A.31, is amended by adding a subdivision to
read:

new text begin Subd. 1x. new text end

new text begin Guaranteed issue of other policies. new text end

new text begin (a) A health carrier that issues a Medicare
supplement policy or certificate must permit policyholders and certificate holders to purchase,
during the open enrollment period, any Medicare supplement policy offered in Minnesota
by the health carrier that includes the same or lesser benefits.
new text end

new text begin (b) A health carrier that issues a Medicare supplement policy or certificate is not required
to allow a policyholder or certificate holder to make a purchase under paragraph (a) if the
policyholder or certificate holder does not pay a premium or makes a material
misrepresentation with respect to the policy or certificate.
new text end