NAC687B.100. Required disclosures.

     1. An individual long-term care insurance contract must contain a provision for renewability unless the long-term care insurance contract provides that the right not to renew is reserved solely to the policyholder. Such a provision must be appropriately captioned, appear on the first page of the long-term care insurance contract, and clearly state the duration, where limited, of renewability and the duration of the term of coverage for which the long-term care insurance contract is issued and for which it may be renewed. If the long-term care insurance contract is not of limited duration, the provision must also clearly state that the coverage is either guaranteed renewable or noncancellable, as appropriate.

     2. Except for riders or endorsements by which the insurer effectuates a request made in writing by the insured under an individual long-term care insurance contract, all riders or endorsements added to an individual long-term care insurance contract after the date the long-term care insurance contract is issued or when the long-term care insurance contract is reinstated or renewed which reduce or eliminate benefits or coverage in the long-term care insurance contract must be agreed to in writing and signed by the insured. After the date the long-term care insurance contract is issued, any rider or endorsement which increases benefits or coverage with a concomitant increase in premium during the term of the long-term care insurance contract must be agreed to in writing and signed by the insured, unless the increased benefits or coverage are required by law. Where a separate additional premium is charged for benefits provided in connection with riders or endorsements, the premium charged must be set forth in the long-term care insurance contract, rider or endorsement.

     3. A long-term care insurance contract which provides for the payment of benefits based on standards described as “usual and customary,” “reasonable and customary” or words of similar import must include a definition and explanation of those terms in its accompanying outline of coverage.

     4. If a long-term care insurance contract or certificate contains any limitations with respect to preexisting conditions, the limitations must appear as a separate paragraph of the long-term care insurance contract or certificate and be labeled as “Preexisting Condition Limitations.”

     5. If a long-term care insurance contract or certificate contains any limitations or conditions with respect to eligibility other than those prohibited pursuant to NAC 687B.116, a statement concerning the limitations or conditions must appear as a separate paragraph of the long-term care insurance contract or certificate, must be labeled as “Limitations or Conditions on Eligibility for Benefits” and must include a description of the limitations or conditions, including information regarding any required number of days of confinement.

     6. If a policy of life insurance or a rider or endorsement on a policy of life insurance provides accelerated benefits for long-term care, at the time of application for the policy, rider or endorsement, a statement disclosing that receipt of accelerated benefits may be taxable and that assistance should be sought from a personal tax advisor must be prominently displayed on the first page of the policy, rider or endorsement and any other related documents. When a request for payment of accelerated benefits is submitted, a copy of the statement disclosing that receipt of accelerated benefits may be taxable and that assistance should be sought from a personal tax advisor must be provided to the insured. This subsection does not apply to a qualified long-term care insurance contract.

     7. If an annuity contract or a rider or endorsement on an annuity contract contains benefits for long-term care insurance, at the time of application for the contract, rider or endorsement, a statement disclosing that receipt of long-term care benefits may be taxable and that assistance should be sought from a personal tax advisor must be prominently displayed on the first page of the contract, rider or endorsement and any other related documents. When a request for payment of long-term care benefits is submitted, a copy of the statement disclosing that receipt of long-term care benefits may be taxable and that assistance should be sought from a personal tax advisor must be provided to the insured. This subsection does not apply to a qualified long-term care insurance contract.

     8. An individual long-term care insurance contract, other than one for which the insurer has no right to change the premium, must include a provision stating that premium rates may change.

     (Added to NAC by Comm’r of Insurance, eff. 11-21-88; A 12-15-94; R028-10, 12-16-2010, eff. 10-1-2011)