§ 27-34.2-19 - Nonforfeiture benefits.
SECTION 27-34.2-19
§ 27-34.2-19 Nonforfeiture benefits.– (a) Except as provided in subsection (b), a long-term care insurance policy maynot be delivered or issued for delivery in this state unless the policyholderor certificateholder has been offered the option of purchasing a policy orcertificate including a nonforfeiture benefit. The offer of a nonforfeiturebenefit may be in the form of a rider that is attached to the policy. In theevent the policyholder or certificateholder declines the nonforfeiture benefit,the insurer shall provide a contingent benefit upon lapse that shall beavailable for a specified period of time following a substantial increase inpremium rates.
(b) When a group long-term care insurance policy is issued,the offer required in subsection (a) shall be made to the group policyholder.However, if the policy is issued as group long-term care insurance as definedin subdivision 27-34.2-4(4)(v), other than to a continuing care retirementcommunity or other similar entity, the offering shall be made to each proposedcertificateholder.
(c) The commissioner shall promulgate regulations specifyingthe type or types of nonforfeiture benefits to be offered as part of long-termcare insurance policies and certificates, the standards for nonforfeiturebenefits, and the rules regarding contingent benefit upon lapse, including adetermination of the specified period of time during which a contingent benefitupon lapse will be available and the substantial premium rate increase thattriggers a contingent benefit upon lapse as described in subsection 1.