This bill mandates that insurers providing stop loss or excess risk insurance for small employer health benefits plans must give at least 90 days' written notice to the plan sponsor before canceling or not renewing the policy. The notice must be in a format determined by the Commissioner of Banking and Insurance. This requirement aims to ensure that small employers have adequate time to make alternative arrangements for their health benefits coverage.

Additionally, the bill clarifies the definition of "stop loss" or "excess risk insurance" in the context of small employer health benefits plans. It specifies that such insurance is designed to reimburse self-funded arrangements for catastrophic or unexpected expenses, and outlines the minimum attachment points for coverage. Specifically, the per person attachment point must be no less than $20,000 per covered person per plan year, and the aggregate attachment point must be at least 125% of expected claims per plan year. The bill will take effect immediately and apply to policies issued or renewed 90 days after enactment.