376.1127. Nonforfeiture benefit option required for long-term care insurance policies, requirements of offer--rulemaking authority.
Nonforfeiture benefit option required for long-term care insurancepolicies, requirements of offer--rulemaking authority.
376.1127. 1. Except as provided in subsection 2 of this section, along-term care insurance policy shall not be delivered or issued fordelivery in this state unless the policyholder or certificate holder hasbeen offered the option of purchasing a policy or certificate including anonforfeiture benefit. The offer of a nonforfeiture benefit may be in theform of a rider that is attached to the policy. If a policyholder orcertificate holder declines the nonforfeiture benefit, the insurer shallprovide a contingent benefit upon lapse that will be available for aspecified period of time following a substantial increase in premium rates.
2. When a group long-term care insurance policy is issued, the offerrequired in subsection 1 of this section shall be made to the grouppolicyholder; except that, if the policy is issued as a group long-termcare insurance, as defined in section 376.1100, other than to a continuingcare retirement community or other similar entity, the offering shall bemade to each proposed certificate holder.
3. The director shall promulgate rules specifying the type or typesof nonforfeiture benefits to be offered as part of long-term care insurancepolicies and certificates, the standards for nonforfeiture benefits, andthe rules regarding contingent benefit upon lapse, including adetermination of the specified period of time during which a contingentbenefit upon lapse will be available and the substantial premium rateincrease that triggers a contingent benefit upon lapse as described insubsection 1 of this section.
(L. 2002 H.B. 1568 merged with S.B. 1009)