[§431:10H-208]  Unintentional lapse. (a)  Each insurer offering long-term care insurance, as a protection againstunintentional lapse, shall comply with this section.

(b)  No individual long-term care policy orcertificate shall be issued until the insurer has received from the applicant awritten designation of at least one person, in addition to the applicant, whois to receive notice of lapse or termination of the policy or certificate fornonpayment of premium, or a written waiver dated and signed by the applicantelecting not to designate additional persons to receive notice.  The applicanthas the right to designate at least one person who is to receive the notice oftermination, in addition to the insured. Designation shall not constituteacceptance of any liability on the third party for services provided to theinsured.  The form used for the written designation shall provide space clearlydesignated for listing at least one person.  The designation shall include eachperson's full name and home address.

(c)  In the case of an applicant who elects notto designate an additional person, the waiver shall state:

 

"ProtectionAgainst Unintended Lapse.  I understand that I have the right to designate atleast one person other than myself to receive notice of lapse or termination ofthis long-term care insurance policy for nonpayment of premium.  I understandthat notice will not be given until thirty (30) days after a premium is due andunpaid.  I elect NOT to designate a person to receive this notice."

 

(d)  The insurer shall notify the insured ofthe right to change this written designation, no less often than every twoyears.

(e)  When the policyholder or certificateholder pays premium for a long-term care insurance policy or certificatethrough a payroll or pension deduction plan, the notice requirement containedin subsection (c) need not be met until sixty days after the policyholder orcertificate holder is no longer on a payment plan.  The application orenrollment form for these policies or certificates shall clearly indicate thepayment plan selected by the applicant. [L 1999, c 93, pt of §2]