31A-22-1412. Nonforfeiture benefits.

270 words·~1 min read·/ut/title-31a/chapter-22/31a-22-1412·

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

(a)A long-term care insurance policy or certificate may not be delivered or issued for delivery in this state unless the policyholder or certificate holder has been offered the option of purchasing a policy or certificate including a nonforfeiture benefit.

(b)The offer of a nonforfeiture benefit under Subsection (1)(a) may be in the form of a rider that is attached to the policy.

(c)If the policyholder or certificate holder declines the nonforfeiture benefit offered under this Subsection

(1), the insurer shall provide a contingent benefit upon lapse of the policy or certificate that is available for a specified period of time following a substantial increase in premium rates.

(i)Except as provided in Subsection (1)(d)(ii) , if a group long-term care insurance policy is issued, the offer required in this Subsection

(1)shall be made to the group policyholder.

(ii)If the policy is issued to a group authorized under Section 31A-22-509 , the offer required under this Subsection

(1)shall be made to each proposed certificate holder.

(2)The commissioner shall make rules:

(a)specifying the types of nonforfeiture benefits to be offered as part of a long-term care insurance policy or certificate;

(b)specifying the standards for nonforfeiture benefits; and

(c)regarding contingent benefits upon lapse, including a determination of:

(i)the specified period of time during which a contingent benefit upon lapse will be available as provided in Subsection

(1); and

(ii)the substantial premium rate increase that triggers a contingent benefit upon lapse as provided in Subsection

(1).

Amended by Chapter 116 , 2001 General Session