20-1691.02. Adoption of rules

240 words·~1 min read·/az/title-20/20-1691-02

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

The director may adopt reasonable rules to implement this article, including rules that:

1. Establish specific standards for policy provisions of long-term care insurance policies, including terms of renewability, initial and subsequent conditions of eligibility, nonduplication of coverage, coverage of dependents, preexisting conditions, termination of insurance, continuation, conversion, probationary periods, limitations, exceptions, reductions, elimination periods, replacement, recurrent conditions and definitions.

2. Establish loss ratio standards for long-term care insurance policies provided that a specific reference to long-term care insurance policies is contained in the rule.

3. Promote premium adequacy and protect policyholders in the event of substantial rate increases.

4. Establish standards for the manner, content and required disclosure for the sale of long-term care insurance policies, including disclosure of policy provisions, conditions and limitations.

5. Prescribe a standard format, including style, arrangement and overall appearance, and the content of an outline of coverage.

6. Establish minimum standards for marketing practices, insurance producer testing and reporting practices relating to long-term care insurance and penalties for violating the standards.

7. Specify the type or types of nonforfeiture benefits to be offered as part of a long-term care insurance policy and certificate, the standards for nonforfeiture benefits and the requirements for contingent benefit on lapse, including a determination of the specified period of time during which a contingent benefit on lapse will be available and the substantial premium rate increase that triggers a contingent benefit on lapse as described in section 20-1691.11.