§431:10H-104  Definitions.  As used in
this article, unless the context requires otherwise, the definitions in this
section apply throughout this article.



"Applicant" means:



(1)  In the case of an individual long-term care
insurance policy, the person who seeks to contract for benefits; and



(2)  In the case of a group long-term care insurance
policy, the proposed certificate holder.



"Certificate" means, for the purposes
of this article, any certificate issued under a group long-term care insurance
policy, which policy has been delivered or issued for delivery in this State.



"Exceptional increase" means only
those increases filed by an insurer that are extraordinary and for which the
commissioner determines the need for the premium rate increase is justified:



(1)  Due to:



(A)  Changes in laws or rules applicable to
long-term care coverage in this State; or



(B)  Increased and unexpected utilization that
affects the majority of insurers of similar products;



(2)  Except as provided in section 431:10H-232, exceptional
increases are subject to the same requirements as other premium rate schedule
increases;



(3)  The commissioner may request a review by an
independent actuary or a professional actuarial body of the basis for a request
that an increase be considered an exceptional increase; and



(4)  The commissioner, in determining that the
necessary basis for an exceptional increase exists, shall also determine any
potential offsets to higher claims costs.



"Group long-term care insurance"
means a long-term care insurance policy which is delivered or issued for
delivery in this State and issued to:



(1)  One or more employers or labor organizations, or
a trust or to the trustees of a fund established by one or more employers or
labor organizations, or a combination thereof, for employees or former
employees or a combination thereof or for members or former members or a
combination thereof, of the labor organizations; or



(2)  Any professional, trade, or occupational
association for its members or former or retired members, or combination
thereof, if the association:



(A)  Is composed of individuals all of whom are
or were actively engaged in the same profession, trade, or occupation; and



(B)  Has been maintained in good faith for
purposes other than obtaining insurance; or



(3)  An association or a trust or the trustees of a
fund established, created, or maintained for the benefit of members of one or
more associations.  Prior to advertising, marketing, or offering the policy
within this State, the association or the insurer of the association shall file
evidence with the commissioner that the association has at the outset a minimum
of one hundred persons; has been organized and maintained in good faith for
purposes other than that of obtaining insurance; has been in active existence
for at least one year; and has a constitution and bylaws which provide that:



(A)  The association holds regular meetings not
less than annually to further purposes of the members;



(B)  Except for credit unions, the association
collects dues or solicits contributions from members; and



(C)  The members have voting privileges and
representation on the governing board and committees.



Thirty days after the filing the association
will be deemed to satisfy the organizational requirements unless the
commissioner makes a finding that the association does not satisfy those
organizational requirements; or



(4)  A group other than as described in paragraphs
(1), (2), and (3), subject to a finding by the commissioner that:



(A)  The issuance of the group policy is not
contrary to the best interest of the public;



(B)  The issuance of the group policy would
result in economies of acquisition or administration; and



(C)  The benefits are reasonable in relation to
the premiums charged.



"HIPAA" means the Health Insurance
Portability and Accountability Act of 1996, P.L. 104-191.



"Incidental", as used in section
431:10H-207.5(j), means that the value of the long-term care benefits provided
is less than ten per cent of the total value of the benefits provided over the
life of the policy.  These values shall be measured as of the date of issue.



"Long-term care insurance" means any
insurance policy or rider advertised, marketed, offered, or designed to provide
coverage for not less than twelve consecutive months for each covered person on
an expense incurred, indemnity, prepaid, or other basis, for one or more
necessary or medically necessary diagnostic, preventive, therapeutic,
rehabilitative, maintenance, or personal care services, provided in a setting
other than an acute care unit of a hospital.  The term includes group and
individual annuities and life insurance policies or riders that provide
directly or that supplement long-term care insurance.  The term also includes a
policy or rider that provides for payment of benefits based upon cognitive
impairment or loss of functional capacity.  The term shall also include
qualified long-term care insurance contracts.  Long-term care insurance may be
issued by insurers, fraternal benefit societies, nonprofit health, hospital,
and medical service corporations, prepaid health plans, health maintenance
organizations, or any similar organization to the extent they are otherwise
authorized to issue life or health insurance.



Long-term care insurance shall not include any insurance
policy that is offered primarily to provide basic medicare supplement coverage,
basic hospital expense coverage, basic medical-surgical expense coverage,
hospital confinement indemnity coverage, major medical expense coverage,
disability income or related asset-protection coverage, accident only coverage,
specified disease or specified accident coverage, or limited benefit health
coverage.



With regard to life insurance, this term does
not include life insurance policies that accelerate the death benefit
specifically for one or more of the qualifying events of terminal illness,
medical conditions requiring extraordinary medical intervention, or permanent
institutional confinement, and that provide the option of a lump-sum payment
for those benefits and in which neither the benefits nor the eligibility for
the benefits is conditioned upon the receipt of long-term care.



Notwithstanding any other provision contained
herein, any product advertised, marketed, or offered as long-term care
insurance shall be subject to this article.



"NAIC" means the National Association
of Insurance Commissioners.



"Policy" means, for the purposes of
this article, any policy, contract, subscriber agreement, rider, or endorsement
delivered or issued for delivery in this State by an insurer; fraternal benefit
society; nonprofit health, hospital, or medical service corporation; prepaid
health plan; health maintenance organization; or any similar organization.



"Qualified long-term care insurance
contract" or "federally tax-qualified long-term care insurance
contract" means an individual or group insurance contract that meets the
requirements of section 7702B(b) of the Internal Revenue Code of 1986, as
amended, as follows:



(1)  The only insurance protection provided under the
contract is coverage of qualified long-term care services.  A contract shall
not fail to satisfy the requirements of this paragraph by reason of payments
being made on a per diem or other periodic basis without regard to the expenses
incurred during the period to which the payments relate;



(2)  The contract does not pay or reimburse expenses
incurred for services or items to the extent that the expenses are reimbursable
under Title XVIII of the Social Security Act, as amended, or would be so
reimbursable but for the application of a deductible or coinsurance amount. 
The requirements of this paragraph do not apply to expenses that are
reimbursable under Title XVIII of the Social Security Act only as a secondary
payor.  A contract shall not fail to satisfy the requirements of this paragraph
by reason of payments being made on a per diem or other periodic basis without
regard to the expenses incurred during the period to which the payments relate;



(3)  The contract is guaranteed renewable, within the
meaning of section 7702B(b)(1)(C) of the Internal Revenue Code of 1986, as
amended;



(4)  The contract does not provide for a cash
surrender value or other money that can be paid, assigned, pledged as
collateral for a loan, or borrowed except as provided in paragraph (5);



(5)  All refunds of premiums and all policyholder
dividends or similar amounts under the contract are to be applied as a
reduction in future premiums or to increase future benefits, except that a
refund on the event of death of the insured or a complete surrender or
cancellation of the contract cannot exceed the aggregate premiums paid under
the contract; and



(6)  The contract meets the consumer protection
provisions set forth in section 7702B(g) of the Internal Revenue Code of 1986,
as amended.



"Qualified long-term care insurance
contract" or "federally tax‑qualified long-term care insurance
contract" also means the portion of a life insurance contract that
provides long-term care insurance coverage by rider or as part of the contract
and that satisfies the requirements of section 7702B(b) and (e) of the Internal
Revenue Code of 1986, as amended. [L 1999, c 93, pt of §2; am L 2007, c 233,
§§5, 6]