NAC687B.245. Lapse of policy to supplement Medicare or certificate for nonpayment of premium: Designation of person to receive notice of lapse or waiver of designation.

     1. An issuer shall not issue a policy to supplement Medicare or certificate advertised, solicited or issued for delivery in this State until the issuer has received from the applicant a designation of one or more persons to receive notice of lapse or a waiver pursuant to subsection 2.

     2. Each applicant shall submit to the issuer of the policy to supplement Medicare or the certificate:

     (a) A written designation of one or more persons other than the applicant to receive notice from the issuer that the policy to supplement Medicare or the certificate has lapsed and may be terminated for nonpayment of a premium; or

     (b) A written waiver which is dated and signed by the applicant and which:

          (1) Indicates that the applicant does not wish to designate any person other than the applicant to receive notice that the policy to supplement Medicare or the certificate has lapsed and may be terminated for nonpayment of a premium; and

          (2) Includes the statement required pursuant to subsection 4.

     3. The form provided by an issuer for making a designation pursuant to paragraph (a) of subsection 2 must provide space clearly designated for listing at least one person to receive notice. A designation made pursuant to paragraph (a) of subsection 2:

     (a) Must include the full name and address of the person designated; and

     (b) Does not constitute acceptance by the person designated of any liability for services provided to the applicant.

     4. A waiver submitted pursuant to paragraph (b) of subsection 2, must contain the following statement:

Protection Against Unintended Lapse

I understand that I have the right to designate at least one person other than myself to receive notice of lapse of this policy to supplement Medicare or certificate for nonpayment of a premium. I elect NOT to designate a person to receive this notice.

     5. An issuer shall, at least once every 2 years, notify an insured of his or her right to make or change a written designation pursuant to subsection 2.

     (Added to NAC by Comm’r of Insurance by R027-04, eff. 8-2-2004)