NAC687B.0681. Designation of person to receive notice of lapse or termination of coverage.

     1. Except as otherwise provided in subsection 3, an insurer shall not issue an individual long-term care insurance contract in this State unless the insurer has received from the applicant:

     (a) A written designation of at least one person, in addition to the applicant, who must receive notice of any lapse or termination of coverage under the policy for nonpayment of premium; or

     (b) A written waiver dated and signed by the applicant stating that the applicant has chosen not to designate another person to receive notice of any lapse or termination of coverage for nonpayment of premium.

     2. The designation pursuant to subsection 1 of another person to receive notice of any lapse or termination of coverage for nonpayment of premium does not constitute acceptance of any liability by the other person for services provided to the applicant. The form used for the written designation of another person to receive notice of any lapse or termination of coverage for nonpayment of premium must provide space clearly designated for listing at least one such person. The designation must include the full name and home address of each person designated by the applicant to receive notice of any lapse or termination of coverage for nonpayment of premium. If an applicant does not designate another person to receive notice of any lapse or termination of coverage for nonpayment of premium, the waiver must state, in substantially similar language: “Protection against unintended lapse. I understand that I have the right to designate at least one person other than myself to receive notice of any lapse or termination of coverage under this policy of long-term care insurance for nonpayment of premium. I understand that notice will not be given until 30 days after the date on which a premium is due and unpaid. I choose NOT to designate a person to receive this notice.” The insurer shall notify an insured of the right to change the written designation described in this section not less than once every 2 years.

     3. If an insured who pays premiums for long-term care insurance through a payroll or pension deduction plan ceases to make such payments through the plan, the insurer shall comply with the requirements of subsections 1 and 2 not later than 60 days after the date on which the premiums are no longer paid through the plan. The application or enrollment form for a long-term care insurance contract or certificate for which the premium is paid through a payroll or pension deduction plan must clearly indicate the payment plan selected by the applicant.

     4. An individual long-term care insurance contract must not lapse or be terminated by the insurer for nonpayment of premium unless the insurer, not less than 30 days after a premium is due and unpaid and not less than 30 days before the effective date of the lapse or termination, has given notice by first-class mail, postage prepaid, to the policyholder and to each person designated by the policyholder to receive notice pursuant to subsection 1 at the address provided by the insured for receiving notice of any lapse or termination. The notice required by this subsection shall be deemed to have been given 5 days after the date on which the insurer mails the notice.

     (Added to NAC by Comm’r of Insurance by R121-07, 9-18-2008, eff. 10-1-2008; A by R028-10, 12-16-2010, eff. 10-1-2011)