A.

Effective Date

Coverage for an Eligible Person and his or her Dependents, if any, is effective on the date specified by UCAR, provided that UCAR receives a properly completed individual enrollment application. This application must be submitted to UCAR according to the enrollment provisions of SECTION 2 - ENROLLMENT, and provided that:

1.

No Coverage shall be effective before the Plan takes effect.

2.

No Dependent shall be covered under the Plan before the Eligible Person is covered.

3.

If a Participant acquires a new Dependent by reason of marriage, then Coverage for that Dependent shall take effect on the date that the new Dependent is married, if Kaiser Permanente and UCAR are notified in writing by the Participant of the marriage within 31 days of occurrence and any necessary adjustment to the Contribution has been made.

4.

If a Participant acquires an "adopted child" who is awaiting final order of adoption, then Coverage for that Dependent shall take effect on the date that the new adopted child is placed in the Participant's home. Kaiser Permanente and UCAR must be notified in writing by the Participant within 31 days of occurrence.

5.

If a Participant acquires a newborn Dependent child, then Coverage for that Dependent shall take effect at the moment of birth and remain in effect for 31 days beyond the date of birth. To continue Coverage for that Dependent, the Participant must notify Kaiser Permanente and UCAR, through the appropriate change form, of the newborn child's birth and the name of the newborn, and make any necessary changes in the Coverage classification and premium.

6.

Health Services for medical conditions arising prior to the Effective Date of Coverage and resulting in confinement are covered as of the Effective Date only if:

You notify Kaiser Permanente of confinement prior to the Effective Date, and

Health Services are received in accordance with the terms of the Plan and provided by Kaiser Permanente physicians and providers.

B.

Eligibility Status Change

Benefits for a person who becomes Eligible for Benefits due to a qualified change in family status will become effective on the date of such change in status. However, the Eligible Person must complete an enrollment and change of coverage form within 31 days after the qualified change in family status.

January 2004