§431:10H-115  Incontestability period--group
and individual policies.  (a)  For a policy or certificate that has been in
force for less than six months an insurer may rescind a long-term care
insurance policy or certificate or deny an otherwise valid long-term care
insurance claim upon a showing of misrepresentation that is material to the
acceptance of coverage.



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



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



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



(e)  If an insurer has paid benefits under the
long-term care insurance policy or certificate, the benefit payments may not be
recovered by the insurer if the policy or certificate is rescinded.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 insurance
policy that accelerates benefits for long-term care.  In this situation, the
remaining death benefits under these policies shall be governed by article 10D
of this chapter.  In all other situations, this section shall apply to life
insurance policies that accelerate benefits for long-term care. [L 1999, c 93,
pt of §2; am L 2003, c 212, §94]