§431:10H-231  Suitability.  (a)  This
section shall not apply to life insurance policies that accelerate benefits for
long-term care.



(b)  Every insurer, health care service plan,
or other entity marketing long-term care insurance (the "issuer")
shall:



(1)  Develop and use suitability standards to
determine whether the purchase or replacement of long-term care insurance is
appropriate for the needs of the applicant;



(2)  Train its producers in the use of its suitability
standards; and



(3)  Maintain a copy of its suitability standards and
make them available for inspection upon request by the commissioner.



(c)  To determine whether the applicant meets
the standards developed by the issuer, the producer and issuer shall develop
procedures that take the following into consideration:



(1)  The ability to pay for the proposed coverage and
other pertinent financial information related to the purchase of the coverage;



(2)  The applicant's goals or needs with respect to
long-term care and the advantages and disadvantages of insurance to meet these
goals or needs; and



(3)  The values, benefits, and costs of the
applicant's existing insurance, if any, when compared to the values, benefits,
and costs of the recommended purchase or replacement.



The issuer, and where a producer is involved, the
producer shall make reasonable efforts to obtain the information set out
above.  The efforts shall include presentation to the applicant, at or prior to
application, the "Long-Term Care Insurance Personal Worksheet".  The
personal worksheet used by the issuer shall contain, at a minimum, information
in the format contained in Appendix B of the April, 2002, NAIC Long-Term Care
Insurance Model Regulation, in not less than twelve-point type.  The issuer may
request the applicant to provide additional information to comply with its
suitability standards.  A copy of the issuer's personal worksheet shall be
filed with the commissioner.



(d)  A completed personal worksheet shall be
returned to the issuer prior to the issuer's consideration of the applicant for
coverage, except the personal worksheet need not be returned for sales of
employer group long-term care insurance to employees and their spouses.



(e)  The sale or dissemination outside the
company or agency by the issuer or producer of information obtained through the
personal worksheet in Appendix B of the April, 2002, NAIC Long-Term Care
Insurance Model Regulation is prohibited.



(f)  The issuer shall use the suitability
standards it has developed pursuant to this section in determining whether
issuing long-term care insurance coverage to a particular applicant is
appropriate.  The producers shall use the suitability standards developed by
the issuer in marketing long-term care insurance.



(g)  At the same time as the personal worksheet
is provided to the applicant, the disclosure form entitled "Things You
Should Know Before You Buy Long-Term Care Insurance" shall be provided. 
The form shall be in the format contained in Appendix C to the December, 2006,
NAIC Long-Term Care Insurance Model Regulation, in not less than twelve-point
type.



(h)  If the issuer determines that the
applicant does not meet its financial suitability standards, or if the
applicant has declined to provide the information, the issuer may reject the
application.  In the alternative, the issuer shall send the applicant a letter
similar to the April, 2002, NAIC Long-Term Care Insurance Model Regulation,
Appendix D.  However, if the applicant has declined to provide financial
information, the issuer may use some other method to verify the applicant's
intent.  Either the applicant's returned letter or a record of the alternate
method of verification shall be made part of the applicant's file.



(i)  The issuer shall report annually to the
commissioner the total number of applications received from residents of this
State, the number of those who declined to provide information on a personal
worksheet, the number of applicants who did not meet the suitability standards,
and the number of those who chose to confirm after receiving a suitability
letter. [L 1999, c 93, pt of §2; am L 2001, c 216, §23; am L 2007, c 233, §§21
to 23]