23 CAR § 84-126 – Right to reduce coverage and lower premiums

(a)
1. (1) Every long-term care insurance policy and certificate shall include a provision that allows the policyholder or certificate holder to reduce coverage and lower the policy or certificate premium in at least one (1) of the following ways:
  1. (A) Reducing the maximum benefit; or
  2. (B) Reducing the daily, weekly, or monthly benefit amount.
2. (2) The insurer may also offer other reduction options that are consistent with the policy or certificate design or the carrier’s administrative processes.
(b) The provision required in subdivision (a)(1) of this section shall include a description of the:
1. (1) Ways in which coverage may be reduced; and
2. (2) Process for requesting and implementing a reduction in coverage.
(c) The age to determine the premium for the reduced coverage shall be based on the age used to determine the premiums for the coverage currently in force.
(d) The insurer may limit any reduction in coverage to plans or options available for that policy form and to those for which benefits will be available after consideration of claims paid or payable.
(e) If a policy or certificate is about to lapse, the insurer shall provide a written reminder to the policyholder or certificate holder of his or her right to reduce coverage and premiums in the notice required by 23 CAR § 84-106(1)(C).
(f) This section does not apply to life insurance policies or riders containing accelerated long-term care benefits.
(g) The requirements of this section shall apply to any long-term care policy issued in this state on or after July 1, 2009.