NAC687B.077. Requirements for marketing.

An insurer, health care plan or other entity who markets, directly or through its agents or other producers, long-term care insurance in this State shall:

     1. Establish procedures regarding marketing to assure that any comparison of long-term care insurance contracts by its agents or other producers will be fair and accurate.

     2. Establish procedures regarding marketing to assure excessive insurance is not sold or issued.

     3. Display prominently by type, stamp or other appropriate means, on the first page of the outline of coverage and long-term care insurance contract, a statement in substantially the following form:

“Notice to buyer: This contract may not cover all of the costs associated with long-term care incurred by the buyer during the period of coverage. The buyer is advised to review carefully all limitations in the contract.”

     4. Inquire and otherwise make every reasonable effort to identify whether a prospective applicant or enrollee for long-term care insurance already has a policy for accident and sickness or a long-term care insurance contract and the types and amounts of any such insurance, except that no inquiry into existing policies for accident and sickness needs to be made for a prospective applicant or enrollee for a qualified long-term care insurance contract.

     5. Establish auditable procedures for verifying compliance with this section.

     6. At the time of solicitation, provide a written notice to the prospective policyholder or certificate holder:

     (a) Informing him or her of the availability of a program which provides counseling to elderly persons concerning health insurance; and

     (b) Providing the name, address and telephone number of the program.

     7. Provide an applicant with copies of forms NDOI-949 and NDOI-953.

     8. Provide an explanation of the contingent benefit upon lapse provided for in subsection 8 of NAC 687B.0686 and, if applicable, the additional contingent benefit upon lapse provided to a long-term care insurance contract with a fixed or limited premium paying period provided for in subsection 9 of NAC 687B.0686.

     (Added to NAC by Comm’r of Insurance, eff. 12-15-94; A by R028-10, 12-16-2010, eff. 10-1-2011)