NAC687B.0684. Delivery of policy summary or contract summary.

     1. A policy summary must be delivered to an applicant for an individual policy of life insurance at the time of policy delivery if the policy provides long-term care benefits, whether by rider, endorsement or within the policy. In the case of direct-response solicitations, the insurer shall deliver the policy summary upon the applicant’s request, or not later than the time the policy is delivered. The policy summary must include:

     (a) An explanation of how the long-term care benefit interacts with other components of the policy, including deductions from death benefits;

     (b) An illustration of the amount of benefits, the length of benefit and the guaranteed lifetime benefits, if any, for each covered person;

     (c) Any exclusions, reductions and limitations on benefits for long-term care;

     (d) A statement that the protection against inflation required by NAC 687B.076 is not available under this policy; and

     (e) If applicable to the policy type:

          (1) A disclosure of the effects of exercising other rights under the policy;

          (2) A disclosure of guarantees related to long-term care costs of insurance charges; and

          (3) Current and projected lifetime benefits.

     2. The provisions of the policy summary described in subsection 1 may be incorporated into a basic illustration required to be delivered by NAC 686A.460 to 686A.479, inclusive, or into the life insurance policy summary which is required to be delivered by NAC 686A.430.

     3. A contract summary must be delivered to a prospective applicant for an individual annuity contract at the time of delivery if the contract provides long-term care benefits, whether by rider, endorsement or within the contract. In the case of direct-response solicitations, the insurer shall deliver the contract summary upon the prospective applicant’s request, or not later than the time the contract is delivered. The contract summary must include:

     (a) An explanation of how the long-term care benefit interacts with other components of the contract, including deductions from death benefits;

     (b) An illustration of the amount of benefits, the length of benefit and the guaranteed lifetime benefits, if any, for each covered person;

     (c) Any exclusions, reductions and limitations on benefits for long-term care; and

     (d) If applicable to the policy type:

          (1) A disclosure of the effects of exercising other rights under the contract;

          (2) A disclosure of guarantees related to long-term care costs of insurance charges; and

          (3) Current and projected lifetime benefits.

     4. The provisions of the contract summary described in subsection 3 may be incorporated into an illustration or into the contract summary which is required to be delivered by NAC 688A.120. An illustration or contract summary used to satisfy the requirements of this subsection must be approved by the Commissioner before use.

     (Added to NAC by Comm’r of Insurance by R028-10, 12-16-2010, eff. 10-1-2011)