Common use of Plan’s Liability in the Event Clause in Contracts

Plan’s Liability in the Event. of Conversion from a Prior Carrier. With respect to Eligible Employees or Dependents who were Totally Disabled on the date of discontinuation of the prior contract or policy, and entitled to an extension of benefits pursuant to Section 1399.62 of the California Health & Safety Code under the prior contract, Plan shall not be financially responsible for any payment of benefits or provision of services directly related to any condition which caused the total disability. In such a situation, the prior carrier shall continue to be financially responsible for all benefits or services directly related to any condition that caused or resulted from the total disability until such extension of benefits is no longer required under California or federal law.