[§431:10H-116]  Nonforfeiture benefits. (a)  Except as provided in subsection (b), a long-term care insurance policyshall not be delivered or issued for delivery in this State unless thepolicyholder or certificate holder has been offered an option to purchase apolicy or certificate that includes a nonforfeiture benefit.  The offer of anonforfeiture benefit may be in the form of a rider that is attached to thepolicy.  If the policyholder or certificate holder declines the nonforfeiturebenefit, the insurer shall provide a contingent benefit upon lapse that shallbe available for a specified period of time following a substantial increase inpremium rates.

(b)  For a group long-term care insurancepolicy, the offer of a nonforfeiture benefit under subsection (a) shall be madeto the group policyholder.  However, if the policy is issued as a grouplong-term care insurance, other than to a continuing care retirement communityor other similar entity, the offering shall be made to each proposed certificateholder.

(c)  The commissioner shall adopt rules tospecify the type of nonforfeiture benefits to be offered as part of long-termcare insurance policies or certificates, the standards for nonforfeiturebenefits, and the rules for contingent benefit upon lapse, including adetermination of the specified period of time during which a contingent benefitupon lapse shall be available and the substantial premium rate increase thattriggers a contingent benefit upon lapse as provided in subsection (a). [L 1999,c 93, pt of §2]