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



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



(c)  In the case of an applicant who elects not
to designate an additional person, the waiver shall state:



 



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



 



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



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