§431:10H-115  Incontestability period--groupand individual policies.  (a)  For a policy or certificate that has been inforce for less than six months an insurer may rescind a long-term careinsurance policy or certificate or deny an otherwise valid long-term careinsurance claim upon a showing of misrepresentation that is material to theacceptance of coverage.

(b)  For a policy or certificate that has beenin force at least six months but less than two years, an insurer may rescind along-term care insurance policy or certificate or deny an otherwise validlong-term care insurance claim upon a showing of misrepresentation that is bothmaterial to the acceptance of coverage and which pertains to the condition forwhich benefits are sought.

(c)  After a policy or certificate has been inforce for two years it is not contestable solely upon the grounds ofmisrepresentation alone.  The policy or certificate may be contested only upona showing that the insured knowingly and intentionally misrepresented relevantfacts relating to the insured's health.

(d)  No long-term care insurance policy orcertificate may be field issued based on medical or health status.  Forpurposes of this subsection, "field issued" means a policy orcertificate issued by a producer or a third-party administrator pursuant to theunderwriting authority granted to the producer or third party administrator byan insurer.

(e)  If an insurer has paid benefits under thelong-term care insurance policy or certificate, the benefit payments may not berecovered by the insurer if the policy or certificate is rescinded.

(f)  In the event of the death of the insured,this section shall not apply to the remaining death benefit of a life insurancepolicy that accelerates benefits for long-term care.  In this situation, theremaining death benefits under these policies shall be governed by article 10Dof this chapter.  In all other situations, this section shall apply to lifeinsurance policies that accelerate benefits for long-term care. [L 1999, c 93,pt of §2; am L 2003, c 212, §94]