Commutation Functions For Individual Policies Providing for hospital, Surgical and Medical Care Benefits AfterRetirement

On March 5, 1958, the New York State Legislature enacted four new health insurance laws which went into effect on July 1, 1959. One of these laws provided that, if the employer so elects, his workers covered for 3 months or more by a group policy are entitled to convert to an individual policy from the same insurance company whenever they leave their jobs to retire or for any other reasons. The individual policy must provide a benefit of at least $10 per day for hospital room and board, up to 21 days; at least $100 for other hospital expenses and, at a minimum, surgical benefits under the $200 surgical schedule. In case of death of the worker, the law also extends this conversion privilege to the worker’s wife or child.