HB 1573 2003
1	CHAMBER ACTION
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6	The Committee on Insurance recommends the following:
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8	Committee Substitute
9	Remove the entire bill and insert:
10	A bill to be entitled
11	An act relating to health insurance; amending s. 395.301,
12	F.S.; requiring certain licensed facilities to make
13	certain information public electronically; requiring
14	notice; providing requirements; requiring health care
15	facilities to provide patients with reasonable estimates
16	of prospective charges; amending s. 408.909, F.S.;
17	revising a definition; authorizing plans to limit the term
18	of coverage; extending the required period without
19	coverage before participation eligibility; extending a
20	program expiration date; amending s. 627.410, F.S.;
21	exempting individuals and certain groups from laws
22	restricting or limiting coinsurance, copayments, or annual
23	or lifetime maximum payments; amending s. 627.6487, F.S.;
24	revising a definition of "eligible individual" for
25	purposes of availability of individual health insurance
26	coverage; authorizing insurers to impose certain
27	surcharges or premium charges for creditable coverage
28	earned in certain states; amending s. 627.6561, F.S.;
29	requiring additional information in a certification
30	relating to certain creditable coverage for purposes of
31	eligibility for exclusion from preexisting condition
32	requirements; amending s. 627.667, F.S.; deleting a
33	limitation on certain application of extension of benefits
34	provisions; amending s. 627.6692, F.S.; extending a time
35	period for continuation of certain coverage under group
36	health plans; amending s. 627.6699, F.S.; revising certain
37	definitions; revising enrollment period criteria for
38	certain health benefit plans; requiring small employers to
39	provide certain health benefit plan information to
40	employees; providing a limitation; revising certain rate
41	adjustment criteria; authorizing separation of experience
42	of certain small employer groups for certain purposes;
43	amending s. 641.31, F.S.; specifying nonapplication of
44	certain health maintenance contract filing requirements to
45	certain group health insurance policies, with exceptions;
46	creating s. 641.31075, F.S.; providing compliance
47	requirements for health maintenance organizations
48	replacing certain coverages; amending s. 641.3111, F.S.;
49	providing additional requirements for extension of
50	benefits under group health maintenance contracts;
51	providing severability; providing an effective date.
52
53	Be It Enacted by the Legislature of the State of Florida:
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55	Section 1. Subsection (7) is added to section 395.301,
56	Florida Statutes, to read:
57	395.301 Itemized patient bill; form and content prescribed
58	by the agency.--
59	(7)(a) Each licensed facility not operated by the state
60	shall make available to the public on its Internet website or by
61	other electronic means its master list of charges and codes and
62	a description of services of the top 100 diagnosis-related
63	groups discharged from the hospital for that year using the CMS
64	grouper applicable to that year and the top 100 outpatient
65	occasions of diagnostic and therapeutic procedures performed
66	using the Healthcare Common Procedure Coding System. For
67	purposes of this paragraph, "CMS grouper" means a system of
68	classification used by the Centers for Medicare and Medicaid
69	Services to assign an inpatient discharge into a diagnosis-
70	related group based on diagnosis codes, procedure codes, and
71	demographic information. The facility shall place a notice in
72	the reception areas that such information is available
73	electronically. The facility’s list of charges and codes and the
74	description of services shall be consistent with federal
75	electronic transmission uniform standards under the Health
76	Insurance Portability and Accountability Act (HIPAA). Changes to
77	the data shall be posted at least 30 days prior to
78	implementation of changes.
79	(b) A health care facility shall, upon request, furnish a
80	prospective patient, prior to provision of medical services, a
81	reasonable estimate of charges for such services. Such estimate
82	shall not preclude the health care facility from exceeding the
83	estimate or making additional charges based on changes in the
84	patient’s condition or treatment needs.
85	Section 2. Paragraph (e) of subsection (2), subsection
86	(3), paragraph (c) of subsection (5), and subsection (10) of
87	section 408.909, Florida Statutes, are amended to read:
88	408.909 Health flex plans.--
89	(2) DEFINITIONS.--As used in this section, the term:
90	(e) "Health flex plan" means a health plan approved under
91	subsection (3) which guarantees payment for specified health
92	care coverage provided to the enrollee who purchases coverage
93	directly from the plan or through a small business purchasing
94	arrangement sponsored by a local government.
95	(3) PILOT PROGRAM.--The agency and the department shall
96	each approve or disapprove health flex plans that provide health
97	care coverage for eligible participants who reside in the three
98	areas of the state that have the highest number of uninsured
99	persons, as identified in the Florida Health Insurance Study
100	conducted by the agency and in Indian River County. A health
101	flex plan may limit or exclude benefits otherwise required by
102	law for insurers offering coverage in this state, may cap the
103	total amount of claims paid per year per enrollee, may limit the
104	number of enrollees or the term of coverage, or may take any
105	combination of those actions.
106	(a) The agency shall develop guidelines for the review of
107	applications for health flex plans and shall disapprove or
108	withdraw approval of plans that do not meet or no longer meet
109	minimum standards for quality of care and access to care.
110	(b) The department shall develop guidelines for the review
111	of health flex plan applications and shall disapprove or shall
112	withdraw approval of plans that:
113	1. Contain any ambiguous, inconsistent, or misleading
114	provisions or any exceptions or conditions that deceptively
115	affect or limit the benefits purported to be assumed in the
116	general coverage provided by the health flex plan;
117	2. Provide benefits that are unreasonable in relation to
118	the premium charged or contain provisions that are unfair or
119	inequitable or contrary to the public policy of this state, that
120	encourage misrepresentation, or that result in unfair
121	discrimination in sales practices; or
122	3. Cannot demonstrate that the health flex plan is
123	financially sound and that the applicant is able to underwrite
124	or finance the health care coverage provided.
125	(c) The agency and the department may adopt rules as
126	needed to administer this section.
127	(5) ELIGIBILITY.--Eligibility to enroll in an approved
128	health flex plan is limited to residents of this state who:
129	(c) Are not covered by a private insurance policy and are
130	not eligible for coverage through a public health insurance
131	program, such as Medicare or Medicaid, or another public health
132	care program, such as KidCare, and have not been covered at any
133	time during the past 126months; and
134	(10) EXPIRATION.--This section expires July 1, 20082004.
135	Section 3. Paragraph (b) of subsection (6) of section
136	627.410, Florida Statutes, is amended to read:
137	627.410 Filing, approval of forms.--
138	(6)
139	(b) The department may establish by rule, for each type of
140	health insurance form, procedures to be used in ascertaining the
141	reasonableness of benefits in relation to premium rates and may,
142	by rule, exempt from any requirement of paragraph (a) any health
143	insurance policy form or type thereof (as specified in such
144	rule) to which form or type such requirements may not be
145	practically applied or to which form or type the application of
146	such requirements is not desirable or necessary for the
147	protection of the public. A law restricting or limiting
148	deductibles, coinsurance, copayments, or annual or lifetime
149	maximum payments shall not apply to any health plan policy
150	offered or delivered to an individual or to a group of 51 or
151	more persons that provides coverage as described in s.
152	641.31071(5)(a)2.With respect to any health insurance policy
153	form or type thereof which is exempted by rule from any
154	requirement of paragraph (a), premium rates filed pursuant to
155	ss. 627.640 and 627.662 shall be for informational purposes.
156	Section 4. Paragraph (b) of subsection (3) of section
157	627.6487, Florida Statutes, is amended, and paragraph (c) is
158	added to subsection (4) of said section, to read:
159	627.6487 Guaranteed availability of individual health
160	insurance coverage to eligible individuals.--
161	(3) For the purposes of this section, the term "eligible
162	individual" means an individual:
163	(b) Who is not eligible for coverage under:
164	1. A group health plan, as defined in s. 2791 of the
165	Public Health Service Act;
166	2. A conversion policy or contract issued by an authorized
167	insurer or health maintenance organization under s. 627.6675 or
168	s. 641.3921, respectively, offered to an individual who is no
169	longer eligible for coverage under either an insured or self-
170	insured group healthemployer plan or group health insurance
171	policy;
172	3. Part A or part B of Title XVIII of the Social Security
173	Act; or
174	4. A state plan under Title XIX of such act, or any
175	successor program, and does not have other health insurance
176	coverage;
177	(4)
178	(c) If the individual’s most recent period of creditable
179	coverage was earned in a state other than this state, an insurer
180	issuing a policy that complies with paragraph (a) may impose a
181	surcharge or charge a premium for such policy equal to that
182	permitted in the state in which such creditable coverage was
183	earned.
184	Section 5. Paragraph (c) of subsection (8) of section
185	627.6561, Florida Statutes, is amended to read:
186	627.6561 Preexisting conditions.--
187	(8)
188	(c) The certification described in this section is a
189	written certification that must include:
190	1. The period of creditable coverage of the individual
191	under the policy and the coverage, if any, under such COBRA
192	continuation provision or continuation pursuant to s. 627.6692.;
193	and
194	2. The waiting period, if any, imposed with respect to the
195	individual for any coverage under such policy.
196	3. A statement that the creditable coverage was provided
197	under a group health plan, a group or individual health
198	insurance policy, or a health maintenance organization contract,
199	the state in which such coverage was provided, and whether or
200	not such individual was eligible for a conversion policy under
201	such coverage.
202	Section 6. Subsection (6) of section 627.667, Florida
203	Statutes, is amended to read:
204	627.667 Extension of benefits.--
205	(6) This section also applies to holders of group
206	certificates which are renewed, delivered, or issued for
207	delivery to residents of this state under group policies
208	effectuated or delivered outside this state, unless a succeeding
209	carrier under a group policy has agreed to assume liability for
210	the benefits.
211	Section 7. Paragraph (e) of subsection (5) of section
212	627.6692, Florida Statutes, is amended to read:
213	627.6692 Florida Health Insurance Coverage Continuation
214	Act.--
215	(5) CONTINUATION OF COVERAGE UNDER GROUP HEALTH PLANS.--
216	(e)1. A covered employee or other qualified beneficiary
217	who wishes continuation of coverage must pay the initial premium
218	and elect such continuation in writing to the insurance carrier
219	issuing the employer's group health plan within 6330days after
220	receiving notice from the insurance carrier under paragraph (d).
221	Subsequent premiums are due by the grace period expiration date.
222	The insurance carrier or the insurance carrier's designee shall
223	process all elections promptly and provide coverage
224	retroactively to the date coverage would otherwise have
225	terminated. The premium due shall be for the period beginning on
226	the date coverage would have otherwise terminated due to the
227	qualifying event. The first premium payment must include the
228	coverage paid to the end of the month in which the first payment
229	is made. After the election, the insurance carrier must bill the
230	qualified beneficiary for premiums once each month, with a due
231	date on the first of the month of coverage and allowing a 30-day
232	grace period for payment.
233	2. Except as otherwise specified in an election, any
234	election by a qualified beneficiary shall be deemed to include
235	an election of continuation of coverage on behalf of any other
236	qualified beneficiary residing in the same household who would
237	lose coverage under the group health plan by reason of a
238	qualifying event. This subparagraph does not preclude a
239	qualified beneficiary from electing continuation of coverage on
240	behalf of any other qualified beneficiary.
241	Section 8. Paragraphs (h) and (u) of subsection (3),
242	paragraph (c) of subsection (5), and paragraph (b) of subsection
243	(6) of section 627.6699, Florida Statutes, are amended, and
244	paragraph (k) is added to subsection (5) of said section, to
245	read:
246	627.6699 Employee Health Care Access Act.--
247	(3) DEFINITIONS.--As used in this section, the term:
248	(h) "Eligible employee" means an employee who works full
249	time, having a normal workweek of 25 or more hours and is paid
250	wages or a salary at least equal to the federal minimum hourly
251	wage applicable to such employee, and who has met any applicable
252	waiting-period requirements or other requirements of this act.
253	The term includes a self-employed individual, a sole proprietor,
254	a partner of a partnership, or an independent contractor, if the
255	sole proprietor, partner, or independent contractor is included
256	as an employee under a health benefit plan of a small employer,
257	but does not include a part-time, temporary, or substitute
258	employee.
259	(u) "Self-employed individual" means an individual or sole
260	proprietor who derives his or her income from a trade or
261	business carried on by the individual or sole proprietor which
262	necessitates that the individual file federal income tax forms,
263	with supporting schedules and accompanying income reporting
264	forms, or federal income tax extensions of time to file forms
265	with the Internal Revenue Service for the most recent tax year
266	results in taxable income as indicated on IRS Form 1040,
267	schedule C or F, and which generated taxable income in one of
268	the 2 previous years.
269	(5) AVAILABILITY OF COVERAGE.--
270	(c) Every small employer carrier must, as a condition of
271	transacting business in this state:
272	1. Beginning July 1, 2000, offer and issue all small
273	employer health benefit plans on a guaranteed-issue basis to
274	every eligible small employer, with 2 to 50 eligible employees,
275	that elects to be covered under such plan, agrees to make the
276	required premium payments, and satisfies the other provisions of
277	the plan. A rider for additional or increased benefits may be
278	medically underwritten and may only be added to the standard
279	health benefit plan. The increased rate charged for the
280	additional or increased benefit must be rated in accordance with
281	this section.
282	2. Beginning July 1, 2000, and until July 31, 2001, offer
283	and issue basic and standard small employer health benefit plans
284	on a guaranteed-issue basis to every eligible small employer
285	which is eligible for guaranteed renewal, has less than two
286	eligible employees, is not formed primarily for the purpose of
287	buying health insurance, elects to be covered under such plan,
288	agrees to make the required premium payments, and satisfies the
289	other provisions of the plan. A rider for additional or
290	increased benefits may be medically underwritten and may be
291	added only to the standard benefit plan. The increased rate
292	charged for the additional or increased benefit must be rated in
293	accordance with this section. For purposes of this subparagraph,
294	a person, his or her spouse, and his or her dependent children
295	shall constitute a single eligible employee if that person and
296	spouse are employed by the same small employer and either one
297	has a normal work week of less than 25 hours.
298	3. Beginning June 1, 2004August 1, 2001, offer and issue
299	basic and standard small employer health benefit plans on a
300	guaranteed-issue basis, during a 30-day open enrollment period
301	of June 1 through June 30 and during a31-day open enrollment
302	period of DecemberAugust 1 through DecemberAugust31 of each
303	year, to every eligible small employer, with fewer than two
304	eligible employees, which small employer is not formed primarily
305	for the purpose of buying health insurance and which elects to
306	be covered under such plan, agrees to make the required premium
307	payments, and satisfies the other provisions of the plan.
308	Coverage provided under this subparagraph shall begin 60 days
309	afteron October 1 of the same year asthe date of enrollment,
310	unless the small employer carrier and the small employer agree
311	to a different date. A rider for additional or increased
312	benefits may be medically underwritten and may only be added to
313	the standard health benefit plan. The increased rate charged for
314	the additional or increased benefit must be rated in accordance
315	with this section. For purposes of this subparagraph, a person,
316	his or her spouse, and his or her dependent children constitute
317	a single eligible employee if that person and spouse are
318	employed by the same small employer and either that person or
319	his or her spouse has a normal work week of less than 25 hours.
320	4. This paragraph does not limit a carrier's ability to
321	offer other health benefit plans to small employers if the
322	standard and basic health benefit plans are offered and
323	rejected.
324	(k) Beginning January 1, 2004, every small employer shall
325	provide, on an annual basis, information on at least three
326	different health benefit plans for employees. Nothing in this
327	paragraph shall be construed as requiring a small employer to
328	provide the health benefit plan or contribute to the cost of
329	such plan.
330	(6) RESTRICTIONS RELATING TO PREMIUM RATES.--
331	(b) For all small employer health benefit plans that are
332	subject to this section and are issued by small employer
333	carriers on or after January 1, 1994, premium rates for health
334	benefit plans subject to this section are subject to the
335	following:
336	1. Small employer carriers must use a modified community
337	rating methodology in which the premium for each small employer
338	must be determined solely on the basis of the eligible
339	employee's and eligible dependent's gender, age, family
340	composition, tobacco use, or geographic area as determined under
341	paragraph (5)(j) and in which the premium may be adjusted as
342	permitted by this paragraph.
343	2. Rating factors related to age, gender, family
344	composition, tobacco use, or geographic location may be
345	developed by each carrier to reflect the carrier's experience.
346	The factors used by carriers are subject to department review
347	and approval.
348	3. Small employer carriers may not modify the rate for a
349	small employer for 12 months from the initial issue date or
350	renewal date, unless the composition of the group changes or
351	benefits are changed. However, a small employer carrier may
352	modify the rate one time prior to 12 months after the initial
353	issue date for a small employer who enrolls under a previously
354	issued group policy that has a common anniversary date for all
355	employers covered under the policy if:
356	a. The carrier discloses to the employer in a clear and
357	conspicuous manner the date of the first renewal and the fact
358	that the premium may increase on or after that date.
359	b. The insurer demonstrates to the department that
360	efficiencies in administration are achieved and reflected in the
361	rates charged to small employers covered under the policy.
362	4. A carrier may issue a group health insurance policy to
363	a small employer health alliance or other group association with
364	rates that reflect a premium credit for expense savings
365	attributable to administrative activities being performed by the
366	alliance or group association if such expense savings are
367	specifically documented in the insurer's rate filing and are
368	approved by the department. Any such credit may not be based on
369	different morbidity assumptions or on any other factor related
370	to the health status or claims experience of any person covered
371	under the policy. Nothing in this subparagraph exempts an
372	alliance or group association from licensure for any activities
373	that require licensure under the insurance code. A carrier
374	issuing a group health insurance policy to a small employer
375	health alliance or other group association shall allow any
376	properly licensed and appointed agent of that carrier to market
377	and sell the small employer health alliance or other group
378	association policy. Such agent shall be paid the usual and
379	customary commission paid to any agent selling the policy.
380	5. Any adjustments in rates for claims experience, health
381	status, or duration of coverage may not be charged to individual
382	employees or dependents. For a small employer's policy, such
383	adjustments may not result in a rate for the small employer
384	which deviates more than 15 percent from the carrier's approved
385	rate. Any such adjustment must be applied uniformly to the rates
386	charged for all employees and dependents of the small employer.
387	A small employer carrier may make an adjustment to a small
388	employer's renewal premium, not to exceed 10 percent annually,
389	due to the claims experience, health status, or duration of
390	coverage of the employees or dependents of the small employer.
391	Semiannually, small group carriers shall report information on
392	forms adopted by rule by the department, to enable the
393	department to monitor the relationship of aggregate adjusted
394	premiums actually charged policyholders by each carrier to the
395	premiums that would have been charged by application of the
396	carrier's approved modified community rates. If the aggregate
397	resulting from the application of such adjustment exceeds the
398	premium that would have been charged by application of the
399	approved modified community rate by 25percent for the current
400	reporting period, the carrier shall limit the application of
401	such adjustments only to minus adjustments beginning not more
402	than 60 days after the report is sent to the department. For any
403	subsequent reporting period, if the total aggregate adjusted
404	premium actually charged does not exceed the premium that would
405	have been charged by application of the approved modified
406	community rate by 25percent, the carrier may apply both plus
407	and minus adjustments. A small employer carrier may provide a
408	credit to a small employer's premium based on administrative and
409	acquisition expense differences resulting from the size of the
410	group. Group size administrative and acquisition expense factors
411	may be developed by each carrier to reflect the carrier's
412	experience and are subject to department review and approval.
413	6. A small employer carrier rating methodology may include
414	separate rating categories for one dependent child, for two
415	dependent children, and for three or more dependent children for
416	family coverage of employees having a spouse and dependent
417	children or employees having dependent children only. A small
418	employer carrier may have fewer, but not greater, numbers of
419	categories for dependent children than those specified in this
420	subparagraph.
421	7. Small employer carriers may not use a composite rating
422	methodology to rate a small employer with fewer than 10
423	employees. For the purposes of this subparagraph, a "composite
424	rating methodology" means a rating methodology that averages the
425	impact of the rating factors for age and gender in the premiums
426	charged to all of the employees of a small employer.
427	8.a. A carrier may separate the experience of small
428	employer groups with less than 2 eligible employees from the
429	experience of small employer groups with 2-50 eligible employees
430	for purposes of determining an alternative modified community
431	rating.
432	b. If a carrier separates the experience of small employer
433	groups as provided in sub-subparagraph a., the rate to be
434	charged to small employer groups of less than 2 eligible
435	employees may not exceed 150 percent of the rate determined for
436	small employer groups of 2-50 eligible employees. However, the
437	carrier may charge excess losses of the experience pool
438	consisting of small employer groups with less than 2 eligible
439	employees to the experience pool consisting of small employer
440	groups with 2-50 eligible employees so that all losses are
441	allocated and the 150-percent rate limit on the experience pool
442	consisting of small employer groups with less than 2 eligible
443	employees is maintained. Notwithstanding s. 627.411(1), the rate
444	to be charged to a small employer group of fewer than 2 eligible
445	employees, insured as of July 1, 2002, may be up to 125 percent
446	of the rate determined for small employer groups of 2-50
447	eligible employees for the first annual renewal and 150 percent
448	for subsequent annual renewals.
449	9. In addition to the separation allowed under sub-
450	subparagraph 8.a., a carrier may also separate the experience of
451	small employer groups of 1-50 eligible employees using a health
452	reimbursement arrangement, as defined in Internal Revenue
453	Service Notice 2002-45, 2002-28 Internal Revenue Bulletin 93,
454	and Revenue Ruling 2002-41, 2002-28 Internal Revenue Bulletin
455	75, from the experience of small employer groups of 1-50
456	eligible employees not using such a health reimbursement
457	arrangement for purposes of determining an alternative modified
458	community rating.
459	Section 9. Subsection (2) and paragraph (d) of subsection
460	(3) of section 641.31, Florida Statutes, are amended to read:
461	641.31 Health maintenance contracts.--
462	(2) The rates charged by any health maintenance
463	organization to its subscribers shall not be excessive,
464	inadequate, or unfairly discriminatory or follow a rating
465	methodology that is inconsistent, indeterminate, or ambiguous or
466	encourages misrepresentation or misunderstanding. A law
467	restricting or limiting deductibles, coinsurance, copayments, or
468	annual or lifetime maximum payments shall not apply to any
469	health maintenance organization contract offered or delivered to
470	an individual or a group of 51 or more persons that provides
471	coverage as described in s. 641.3107(5)(a)2.The department, in
472	accordance with generally accepted actuarial practice as applied
473	to health maintenance organizations, may define by rule what
474	constitutes excessive, inadequate, or unfairly discriminatory
475	rates and may require whatever information it deems necessary to
476	determine that a rate or proposed rate meets the requirements of
477	this subsection.
478	(3)
479	(d) Any change in rates charged for the contract must be
480	filed with the department not less than 30 days in advance of
481	the effective date. At the expiration of such 30 days, the rate
482	filing shall be deemed approved unless prior to such time the
483	filing has been affirmatively approved or disapproved by order
484	of the department. The approval of the filing by the department
485	constitutes a waiver of any unexpired portion of such waiting
486	period. The department may extend by not more than an additional
487	15 days the period within which it may so affirmatively approve
488	or disapprove any such filing, by giving notice of such
489	extension before expiration of the initial 30-day period. At the
490	expiration of any such period as so extended, and in the absence
491	of such prior affirmative approval or disapproval, any such
492	filing shall be deemed approved. This paragraph does not apply
493	to group health insurance policies effectuated and delivered in
494	this state insuring groups of 51 or more persons, except for
495	Medicare supplement insurance, long-term care insurance, and any
496	coverage under which the increase in claims costs over the
497	lifetime of the contract due to advancing age or duration is
498	refunded in the premium.
499	Section 10. Section 641.31075, Florida Statutes, is
500	created to read:
501	641.31075 Requirements for replacing health coverage.--Any
502	health maintenance organization that is replacing any other
503	group health coverage with its group health maintenance coverage
504	shall comply with s. 627.666.
505	Section 11. Subsection (1) of section 641.3111, Florida
506	Statutes, is amended to read:
507	641.3111 Extension of benefits.--
508	(1) Every group health maintenance contract shall provide
509	that termination of the contract shall be without prejudice to
510	any continuous loss which commenced while the contract was in
511	force, but any extension of benefits beyond the period the
512	contract was in force may be predicated upon the continuous
513	total disability of the subscriber and may be limited to payment
514	for the treatment of a specific accident or illness incurred
515	while the subscriber was a member. The extension is required
516	regardless of whether the group contract holder or other entity
517	secures replacement coverage from a new insurer or health
518	maintenance organization or foregoes the provision of coverage.
519	The required provision must provide for continuation of contract
520	benefits in connection with the treatment of a specific accident
521	or illness incurred while the contract was in effect.Such
522	extension of benefits may be limited to the occurrence of the
523	earliest of the following events:
524	(a) The expiration of 12 months.
525	(b) Such time as the member is no longer totally disabled.
526	(c) A succeeding carrier elects to provide replacement
527	coverage without limitation as to the disability condition.
528	(d) The maximum benefits payable under the contract have
529	been paid.
530	Section 12. If any provision of this act or the
531	application thereof to any person or circumstance is held
532	invalid, the invalidity shall not affect other provisions or
533	applications of the act which can be given effect without the
534	invalid provision or application, and to this end the provisions
535	of this act are declared severable.
536	Section 13. This act shall take effect upon becoming a
537	law.