(a) For purposes of this chapter, an employee or dependent eligible for enrollment in a small or large employer’s health benefit plan is a late enrollee if the individual requests enrollment after the expiration of:
(1) the initial enrollment period established under the terms of the first plan for which the individual was eligible through the small or large employer; or
(2) an open enrollment period under Section 1501.156(a) or 1501.606(a).
(b) An employee or dependent eligible for enrollment is not a late enrollee if the individual:
(1) was covered under another health benefit plan or self-funded employer health benefit plan at the time the individual was eligible to enroll;
(2) declined enrollment in writing, at the time of the initial eligibility for enrollment, stating that coverage under another health benefit plan or self-funded employer health benefit plan was the reason for declining enrollment;
(3) has lost coverage under the other health benefit plan or self-funded employer health benefit plan as a result of:
(A) the termination of employment;
(B) a reduction in the number of hours of employment;
(C) the termination of the other plan’s coverage;
(D) the termination of contributions toward the premium made by the employer; or
(E) the death of a spouse or divorce; and
(4) requests enrollment not later than the 31st day after the date coverage under the other health benefit plan or self-funded employer health benefit plan terminates.

(c) An employee or dependent eligible for enrollment is also not a late enrollee if the individual is:
(1) employed by an employer that offers multiple health benefit plans and the individual elects a different health benefit plan during an open enrollment period;
(2) a spouse for whom a court has ordered coverage under a covered employee’s plan and the request for enrollment of the spouse is made not later than the 31st day after the date the court order is issued;
(3) a child for whom a court has ordered coverage under a covered employee’s plan and the request for enrollment is made not later than the 31st day after the date the employer receives the court order; or
(4) a child of a covered employee who has lost coverage under Title XIX of the Social Security Act (42 U.S.C. § 1396 et seq.), other than coverage consisting solely of benefits under Section 1928 of that Act (42 U.S.C. § 1396s), or under Chapter 62, Health and Safety Code, and the request for enrollment is made not later than the 31st day after the date on which the child loses coverage.