2600

2601

2602

2602.1 An individual long-term care insurance policy shall contain a renewal provision.

2602.2 A policy issued to an individual shall not contain a renewal provision other than a “guaranteed renewable” or “noncancellable” provision.

2602.3 Neither the term “guaranteed renewable” nor “noncancellable” shall be used in an individual long-term care insurance policy unless:

(a) The use conforms with the requirements of this section; and

(b) Further explanatory language, in conformity with the disclosure requirements of section 2618, is also included.

2602.4 The term “guaranteed renewable” may be used only when the insured has the right to continue the long-term care insurance in force by the timely payment of premiums and when the insurer has no unilateral right to make any change in any provision of the policy or rider while the insurance is in force, and cannot decline to renew, except that rates may be revised by the insurer on a class basis.

2602.5 The term “noncancellable” may be used only when the insured has the right to continue the long-term care insurance in force by the timely payment of premiums and the insurer has no right to unilaterally make any change in any provision of the insurance or in the premium rate.

2602.6 The term “level premium” may be used only when the insurer does not have the right to change the premium.

2602.7 In addition to the other requirements of this section, a qualified long-term care insurance contract shall be guaranteed renewable within the meaning of section 7702B(b)(1)(C) of the Internal Revenue Code of 1986, approved August 21, 1996 (110 Stat. 2054; 26 U.S.C. § 7702B(b)(1)(C)).

SOURCE: Final Rulemaking published at 52 DCR 10902 (December 16, 2005); as amended by Final Rulemaking published at 55 DCR 3759 (April 11, 2008).