1. (1) If an application for a long-term care insurance policy is approved, the issuer shall deliver the policy to the applicant or policyholder not later than 30 days after the date of approval.

2. (2)

   1. (a) At the time of delivery of an individual life insurance policy that provides long-term care benefits within the policy or by rider, a policy summary must be provided to the insured.
   2. (b) In the case of direct response solicitations, the insurer shall deliver the policy summary upon the applicant's request, and whether or not a request is made, a policy summary must be delivered not later than at the time the policy is delivered.

   3. (c) In addition to complying with any other applicable requirements, the summary must include:

      1. (i) an explanation of how the long-term care benefit interacts with other components of the policy, including deductions from death benefits;
      2. (ii) an illustration of the amount of benefit, the length of benefit, and the guaranteed lifetime benefit, if any, for each covered person;
      3. (iii) any exclusions, reductions, and limitations on benefits of long-term care;
      4. (iv) a statement that any long-term care inflation protection option required by the Administrative Rules of Montana is or is not available under this policy;

   4. (d) If applicable to the policy type, the summary must also include:

      1. (i) a disclosure of the effects of other exercising rights under the policy;
      2. (ii) a disclosure of guarantees related to long-term care costs of insurance charges; and
      3. (iii) current and projected maximum lifetime benefits.
3. (3) The required provisions of the policy summary may be incorporated into a basic illustration required to be delivered in accordance with administrative rules or into the life insurance policy summary.

4. (4) Any time a long-term care benefit funded through a life insurance vehicle by the acceleration of the death benefits is in benefit payment status, a monthly report must be provided to the policyholder. The report must include:

   1. (a) any long-term care benefits paid out during the month;
   2. (b) an explanation of any changes in the policy, such as to death benefits or cash values, due to long-term care benefits being paid out; and
   3. (c) the amount of long-term care benefits existing or remaining.

History: En. Sec. 47, Ch. 416, L. 1997; amd. Sec. 10, Ch. 32, L. 2007.