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

(1)  Except as provided in paragraph (2), this sectionapplies to any long-term care policy or certificate issued in this State on orafter 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) ofthe 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 thepolicy anniversary following July 1, 2007.

(b)  Other than for policies for which noapplicable premium rate or rate schedule increases can be made, insurers shallprovide all of the information listed in this subsection to the applicant atthe time of application or enrollment; unless the method of application doesnot allow for delivery at that time.  In such a case, an insurer shall provideall of the information listed in this subsection to the applicant no later thanat the time of delivery of the policy or certificate as follows:

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

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

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

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

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

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

(5)  With respect to disclosure of premium rateincreases:

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

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

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

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

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

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

(D)  If an acquiring insurer files for a rateincrease on a long-term care policy form acquired from nonaffiliated insurersor a block of policy forms acquired from nonaffiliated insurers on or beforethe later of July 1, 2007, or the end of a twenty-four-month period followingthe acquisition of the block or policies, the acquiring insurer may excludethat rate increase from the disclosure.  However, the nonaffiliated sellingcompany shall include the disclosure of that rate increase in accordance withsubparagraph (A); and

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

(c)  An applicant shall sign an acknowledgmentat the time of application, unless the method of application does not allow forsignature 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 signan acknowledgment at the time of application, the applicant shall sign no laterthan at the time of delivery of the policy or certificate.

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

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