NAC687B.127. Replacement of contract or certificate: Waiver of time applicable to preexisting conditions and probationary period; notice to existing insurer.

     1. If a long-term care insurance contract or certificate replaces another long-term care insurance contract or certificate, the insurer replacing the long-term care insurance contract or certificate shall waive any period of time applicable to preexisting conditions and probationary periods in the new long-term care insurance contract or certificate for similar benefits to the extent that similar periods have been satisfied under the original long-term care insurance contract or certificate.

     2. Where replacement of the long-term care insurance contract or certificate is intended, the insurer replacing the long-term care insurance contract or certificate shall notify, in writing, the existing insurer of the proposed replacement. The insurer replacing the long-term care insurance contract or certificate shall identify the existing long-term care insurance contract or certificate by the name of the insurer, the name of the insured and either the number of the long-term care insurance contract or certificate or the address of the insured, including the zip code. The written notice must be given not less than 5 working days before the date the application is received by the insurer or the date the long-term care insurance contract is issued, whichever is sooner.

     3. If a life insurance policy that accelerates benefits for long-term care replaces the coverage of a long-term care insurance contract, the insurer shall comply with the provisions of NAC 687B.125 to 687B.140, inclusive. If a life insurance policy that accelerates benefits for long-term care replaces the coverage of a life insurance policy, the insurer shall comply with the replacement requirements of NAC 686A.510 to 686A.570, inclusive. If a life insurance policy that accelerates benefits for long-term care replaces another life insurance policy that accelerates benefits for long-term care, the replacing insurer shall comply with both NAC 686A.510 to 686A.570, inclusive, and NAC 687B.125 to 687B.140, inclusive.

     4. If an annuity contract that includes provisions for long-term care insurance replaces the coverage of a long-term care insurance contract, the insurer or similar organization shall comply with the provisions of NAC 687B.125 to 687B.140, inclusive. If an annuity contract that includes provisions for long-term care insurance replaces an annuity contract, the insurer or similar organization shall comply with the replacement requirements of NAC 686A.560, 686A.573 and 686A.577. If an annuity contract that includes provisions for long-term care insurance replaces another annuity contract that includes provisions for long-term care insurance, the replacing insurer or similar organization shall comply with NAC 686A.560, 686A.573, 686A.577 and 687B.125 to 687B.140, inclusive.

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