(1) The HMK coverage group eligibility terminates immediately upon:

(a) death of the enrollee; or

(b) incarceration of the enrollee.

(2) The HMK coverage group eligibility terminates at the end of the month the department becomes aware:

(a) the enrollee attains the age of 19 years;

(b) the parent or guardian or enrollee becomes eligible for state employee or Montana University System employee insurance benefits;

(c) the enrollee is a beneficiary of other creditable health insurance;

(d) the enrollee is determined eligible for HMK Plus;

(e) the enrollee wishes to disenroll;

(f) the enrollee moves out of Montana;

(g) the applicant has moved without providing a new address and the department is unable to locate the applicant; or

(h) a completed renewal application has not been received by the department.

(3) Termination of eligibility, based on insufficient funding at the department may not be effective earlier than the end of the month notice of termination is given to the enrollee or the enrollee's parent or guardian.

(4) A parent or guardian is liable to the department and the department may collect from the parent or guardian the amount of actual payments to the TPA contractor or to providers for any benefits furnished to the enrollee because of an intentional misrepresentation or a failure to give notice of changes as required by this subchapter.