RENEWABILITY OF COVERAGE; CANCELLATION

(a) Except as provided by Section 846.207, a multiple employer welfare arrangement shall renew the health benefit plan, at the employer's option, unless: (1) a contribution has not been paid as required by the terms of the plan; (2) the employer has committed fraud or has intentionally misrepresented a material fact; (3) the employer has not complied with the terms of the health benefit plan document; (4) the health benefit plan is ceasing to offer any coverage in a geographic area; or (5) there has been a failure to meet the terms of an applicable collective bargaining agreement or other agreement requiring or authorizing contributions to the health benefit plan, including a failure to renew the agreement or to employ employees covered by the agreement. (b) A multiple employer welfare arrangement may refuse to renew the coverage of a participating employee or dependent for fraud or intentional misrepresentation of a material fact by that person. (c) A multiple employer welfare arrangement may not cancel a health benefit plan except for a reason specified for refusal to renew under Subsection (a). An arrangement may not cancel the coverage of a participating employee or dependent except for a reason specified for refusal to renew under Subsection (b).