(

a) After a small employer submits a completed application, the carrier shall, within days notify the employer of the employer’s actual rates in accordance with

Section 10714. The employer shall have days in which to exercise the right to buy coverage at the quoted rates. (

b) When a small employer submits a premium payment, based on the quoted rates, and that payment is delivered or postmarked, whichever occurs earlier, within the first days of a month, coverage shall become effective no later than the first day of the following month. When that payment is neither delivered nor postmarked until after the 15th day of a month, coverage shall become effective no later than the first day of the second month following delivery or postmark of the payment. (

c) During the first days of coverage, the small employer shall have the option of changing coverage to a different benefit plan design offered by the same carrier. If a small employer notifies the carrier of the change within the first days of a month, coverage under the new benefit plan design shall become effective no later than the first day of the following month. If a small employer notifies the carrier of the change after the 15th day of a month, coverage under the new benefit plan design shall become effective no later than the first day of the second month following notification. (

d) All eligible employees and dependents listed on the small employer’s completed application shall be covered on the effective date of the health benefit plan.