514G.106 - INCONTESTABILITY PERIOD.

        514G.106  INCONTESTABILITY PERIOD.         1.  An insurer may rescind a long-term care insurance policy or      certificate or deny an otherwise valid long-term care insurance claim      if the policy or certificate has been in force for less than six      months upon a showing of misrepresentation that is material to the      insurer's acceptance for coverage.         2.  An insurer may rescind a long-term care insurance policy or      certificate or deny an otherwise valid long-term care insurance claim      if the policy or certificate has been in force for at least six      months but less than two years, upon a showing of misrepresentation      that is both material to the acceptance for coverage and pertains to      the condition for which benefits are sought.         3.  An insurer shall not contest a long-term care insurance policy      or certificate that has been in force for two or more years solely      upon the grounds of misrepresentation.  Such a policy or certificate      may be contested only upon a showing that the insured knowingly and      intentionally misrepresented relevant facts relating to the insured's      health.         4.  A long-term care insurance policy or certificate may be      field-issued if the compensation paid to the field issuer is not      based on the number of policies or certificates issued.  For the      purposes of this subsection, a "field-issued" policy means a      policy or certificate issued by a producer or third-party      administrator pursuant to the underwriting authority granted to the      producer or third-party administrator by an insurer and using the      insurer's underwriting guidelines.         5.  An insurer that has paid benefits under a long-term care      insurance policy or certificate shall not recover such benefit      payments if the policy or certificate is rescinded.         6.  The provisions of this section are applicable to life      insurance policies or certificates that accelerate benefits for      long-term care.  However, if an insured dies, the remaining death      benefits of a life insurance policy that accelerates benefits for      long-term care are not governed by this section but by the provisions      of section 508.28.  In all other situations, this section shall apply      to life insurance policies that accelerate benefits for long-term      care.  
         Section History: Recent Form
         2008 Acts, ch 1175, §7