(1) A discount plan organization may charge a periodic charge as well as a reasonable one-time processing fee for a discount plan.
(2)(a) If the member cancels his or her membership in the discount plan organization within the first 30 days after the effective date of enrollment in the plan, the member shall receive a reimbursement of all periodic charges upon return of the discount card to the discount plan organization.
(b) If the member cancels his or her membership in the discount plan organization after the first 30 days, the discount plan organization:1. Must cancel the membership on or before 30 days after receipt of the member’s cancellation request.
2. May not charge the member any fees after the effective date of the cancellation of the membership.
3. Must provide a pro rata reimbursement of periodic charges made for months after the cancellation date.
(c) If the member cancels his or her membership in the discount plan organization consistent with the open enrollment rules established by an employer or association for a plan having an open enrollment period, the member shall receive a pro rata reimbursement of all periodic charges upon return of the discount card to the discount plan organization.
(3) If the discount plan organization cancels a membership for any reason other than nonpayment of fees by the member, the discount plan organization must make a pro rata reimbursement of all periodic charges to the member.
(4) In addition to the reimbursement of periodic charges for the reasons stated in subsections (2) and (3), a discount plan organization shall also reimburse the member for any portion of a one-time processing fee that exceeds $30 per year.
