Common use of Portability of Coverage Clause in Contracts

Portability of Coverage. If a dependent loses coverage under this contract due to death of the subscriber, loss of eligibility under the contract as a dependent including subscriber’s enrollment in Medicare or divorce in the case of a spouse or a dependent, PIC will allow the covered dependents of the subscriber to remain covered under this contract as long as a covered spouse becomes the subscriber to the contract or, if there is no covered spouse, each dependent child may transfer as a subscriber to another substantially similar contract offered by PIC. Dependents under age 18 may become subscribers only if they receive parental or guardian consent. PIC will permit the transfer (if election is made within 31 calendar days of the date of loss of coverage) without any limitation or other restriction of any type other than those which applied to the subscriber under the prior contract. If you transfer to a substantially similar contract offered by PIC, any amounts that you already paid under this contract for covered services that are subject to coinsurance, deductibles and out of pocket limits, or that you received that are subject to benefit limits or visit maximums, and any covered services that you received that are subject to benefit limits or visit maximums under this contract, will continue to count toward any applicable deductibles, out of pocket limits, benefit limits and/or visit maximums.