Sec. 7. Whenever a parent is required by a court or an administrative order to provide health coverage for a child and the parent is eligible for family health coverage through an insurer, the insurer:
(1) shall permit the parent to enroll under the family coverage a child who is otherwise eligible for the coverage, without regard to any enrollment season restrictions;
(2) shall enroll a child under the family coverage upon application by:
(A) the child's custodial parent;
(B) the office of Medicaid policy and planning; or
(C) a Title IV-D agency;
whenever a noncustodial parent who is enrolled fails to apply for coverage of the child; and
(3) may not disenroll or eliminate coverage of a child who is otherwise eligible for coverage unless the insurer is provided satisfactory written evidence that:
(A) the court order or an administrative order is no longer in effect; or
(B) the child is or will be enrolled in comparable health coverage through another insurer that is to take effect not later than the effective date of the disenrollment.