§431:10H-220  Requirement to offer inflationprotection; group and individual policies.  (a)  No insurer may offer along-term care insurance policy unless the insurer also offers to thepolicyholder in addition to any other inflation protection the option topurchase a policy that provides for benefit levels to increase with benefitmaximums or reasonable durations which are meaningful to account for reasonablyanticipated increases in the costs of long-term care services covered by thepolicy.  Insurers shall offer to each policyholder, at the time of purchase,the option to purchase a policy with an inflation protection feature no lessfavorable than one of the following:

(1)  Increases benefit levels annually in a manner sothat the increases are compounded annually at a rate not less than five percent;

(2)  Guarantees the insured individual the right toperiodically increase benefit levels without providing evidence of insurabilityor health status so long as the option for the previous period has not beendeclined.  The amount of the additional benefit shall be no less than thedifference between the existing policy benefit and that benefit compoundedannually at a rate of at least five per cent for the period beginning with thepurchase of the existing benefit and extending until the year in which theoffer is made; or

(3)  Covers a specified percentage of actual orreasonable charges and does not include a maximum specified indemnity amount orlimit.

(b)  Where the policy is issued to a group, therequired offer in subsection (a) shall be made to the group policyholder;except if the policy is issued to a group defined in paragraph (4) under thedefinition of "group long-term care insurance" in section 431:10H-104other than to a continuing care retirement community, the offering shall bemade to each certificate holder.

(c)  The offer in subsection (a) shall not berequired of life insurance policies or riders containing accelerated long-termcare benefits.

(d)  Insurers shall include the following informationin or with the outline of coverage:

(1)  A graphic comparison of the benefit levels of apolicy that increases benefits over the policy period with a policy that doesnot increase benefits.  The graphic comparison shall show benefit levels overat least a twenty-year period.

(2)  Any expected premium increases or additionalpremiums to pay for automatic or optional benefit increases.

(e)  Inflation protection benefit increasesunder a policy which contains these benefits shall continue without regard toan insured's age, claim status or claim history, or the length of time theperson has been insured under the policy.

(f)  An offer of inflation protection thatprovides for automatic benefit increases shall include an offer of a premiumwhich the insurer expects to remain constant.  The offer shall disclose in aconspicuous manner that the premium may change in the future unless the premiumis guaranteed to remain constant.

(g)  Inflation protection in subsection (a)(2)shall be included in a long-term care insurance policy unless the insurerobtains a rejection of inflation protection signed by the policyholder asrequired in subsection (h).

(h)  The rejection shall be considered a partof the application and shall state:

 

"I have reviewedthe outline of coverage and the graphs that compare the benefits and premiumsof this policy with and without inflation protection.  Specifically, I havereviewed Plans _________________, and I REJECT INFLATION PROTECTION."

 

[L 1999, c 93, pt of §2; am L 2003, c 212, §96]