§431:10H-217.5  Required disclosure of
rating practices to consumers.  (a)  This section shall apply as follows:



(1)  Except as provided in paragraph (2), this section
applies to any long-term care policy or certificate issued in this State on or
after January 1, 2008; and



(2)  For certificates issued on or after July 1, 2007,
under a group long-term care insurance policy as defined in paragraph (1) of
the definition of "group long-term care insurance" in section 431:10H‑104,
which policy was in force on July 1, 2007, this section shall apply on the
policy anniversary following July 1, 2007.



(b)  Other than for policies for which no
applicable premium rate or rate schedule increases can be made, insurers shall
provide all of the information listed in this subsection to the applicant at
the time of application or enrollment; unless the method of application does
not allow for delivery at that time.  In such a case, an insurer shall provide
all of the information listed in this subsection to the applicant no later than
at the time of delivery of the policy or certificate as follows:



(1)  A statement that the policy may be subject to
rate increases in the future;



(2)  An explanation of potential future premium rate
revisions and the policyholder's or certificate holder's option in the event of
a premium rate revision;



(3)  The premium rate or rate schedules applicable to
the applicant that will be in effect until a request is made for an increase;



(4)  A general explanation for applying premium rate
or rate schedule adjustments that shall include:



(A)  A description of when premium rate or rate
schedule adjustments will be effective (e.g., next anniversary date or next
billing date); and



(B)  The right to a revised premium rate or
rate schedule as provided in paragraph (3) if the premium rate or rate schedule
is changed;



(5)  With respect to disclosure of premium rate
increases:



(A)  Information regarding each premium rate
increase on this policy form or similar policy forms over the past ten years
for this State or any other state that, at a minimum, identifies:



(i)  The policy forms for which premium rates
have been increased;



(ii)  The calendar years when the policy form was
available for purchase; and



(iii)  The amount or per cent of each increase.  The
percentage may be expressed as a percentage of the premium rate prior to the
increase and may also be expressed as minimum and maximum percentages if the
rate increase is variable by rating characteristics;



(B)  The insurer, in a fair manner, may provide
additional explanatory information related to the rate increases;



(C)  An insurer may exclude from the disclosure
premium rate increases that only apply to blocks of business acquired from
other nonaffiliated insurers or the long-term care policies acquired from other
nonaffiliated insurers when those increases occurred prior to the acquisition;



(D)  If an acquiring insurer files for a rate
increase on a long-term care policy form acquired from nonaffiliated insurers
or a block of policy forms acquired from nonaffiliated insurers on or before
the later of July 1, 2007, or the end of a twenty-four-month period following
the acquisition of the block or policies, the acquiring insurer may exclude
that rate increase from the disclosure.  However, the nonaffiliated selling
company shall include the disclosure of that rate increase in accordance with
subparagraph (A); and



(E)  If the acquiring insurer in subparagraph
(D) files for a subsequent rate increase, even within the twenty-four-month
period, on the same policy form acquired from nonaffiliated insurers or block
of policy forms acquired from nonaffiliated insurers referenced in subparagraph
(D), the acquiring insurer shall make all disclosures required by this
paragraph, including disclosure of the earlier rate increase referenced in
subparagraph (D).



(c)  An applicant shall sign an acknowledgment
at the time of application, unless the method of application does not allow for
signature at that time, that the insurer made the disclosure required under subsection
(b)(1) to (5).  If due to the method of application the applicant cannot sign
an acknowledgment at the time of application, the applicant shall sign no later
than at the time of delivery of the policy or certificate.



(d)  An insurer shall use the forms in Appendix
B of the April 2002, NAIC Model Long-Term Care Insurance Model Regulation and
Appendix F of the December 2006, NAIC Model Long-Term Care Insurance Model
Regulation to comply with the requirements of subsections (b) and (c).



(e)  An insurer shall provide notice of an
upcoming premium rate schedule increase to all policyholders or certificate
holders, if applicable, at least forty-five days prior to the implementation of
the premium rate schedule increase by the insurer.  The notice shall include
the information required by subsection (b) when the rate increase is
implemented. [L 2007, c 233, pt of §4; am L 2009, c 49, §1]