The medical service corporation shall:
1. Issue the converted contract without evidence of insurability;
2. Base the premium on the converted policies for the first 12 months, and subsequent renewals, upon the medical service corporation’s table of premium rates applicable to the age and class of risk of each person to be covered under the contract and to the type and amount of coverage provided. The frequency of premium payments must be the same as is customarily required by the medical service corporation for the contract form and plan selected except that premium payments must not be required more often than quarterly;
3. Provide that the effective date of the converted contract is 12:01 a.m. on the day after the termination of coverage under the group contract; and
4. Provide that the converted contract covers the employee or member and dependents of the employee or member who were covered by the group contract on the date of his or her termination. At the option of the insurer, a separate converted contract may be issued to cover any dependent.