Separate classes of individual business--Reasons--Number

A carrier may establish a separate class of individual business only to reflect substantial differences in expected claims experience or administrative costs related to the following reasons: (1) The carrier used more than one type of system for the marketing and sale of health benefit plans to individuals; or (2) The carrier has acquired a class of business from another carrier. A carrier may establish up to three separate classes of individual business under this section. Source: SL 1996, ch 286 , § 6.