NAC687B.106. Required provisions for reducing coverage and lowering premium; notice.

     1. The provisions of this section do not apply to a policy of life insurance or a rider or endorsement to a policy of life insurance that contains accelerated benefits for long-term care.

     2. Each long-term care insurance contract or certificate must include a provision that allows the policyholder or certificate holder to reduce coverage and lower the premium by reducing:

     (a) The maximum benefit; or

     (b) The daily, weekly or monthly benefit amount.

     3. In addition to the provisions of subsection 2, an insurer may include a provision that allows the policyholder or certificate holder to reduce coverage and lower the premium by offering any other option to reduce the premium that is consistent with the other provisions of the long-term care insurance contract or certificate or the administrative processes of the insurer.

     4. Any provision that allows the policyholder or certificate holder to reduce coverage and lower the premium must include a description of the ways in which coverage may be reduced and the process for requesting and implementing a reduction in coverage.

     5. For the purposes of reducing coverage pursuant to this section, the age of the insured used to determine the premium for the reduced coverage must be based on the age used to determine the premiums for the current amount of coverage.

     6. The insurer may limit any reduction in coverage to plans or options available for that long-term care insurance contract form and to those for which benefits will be available after consideration of claims paid or payable.

     7. If a long-term care insurance contract or certificate is at risk of lapsing, the insurer shall, in addition to the notice required pursuant to NAC 687B.0681, provide written notice to the policyholder or certificate holder of his or her right to reduce coverage and premiums pursuant to this section. The insurer shall provide notice to the policyholder or certificate holder before the later of:

     (a) The date 20 days before the end of the grace period provided by the policy or certificate; or

     (b) The date on which the premium becomes past due.

     (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)