(a) The commissioner, upon the commissioner’s own initiative or upon request by an insurer, shall waive any requirement of this part if such waiver does not contradict the objective or intent of the rule and:

1. (1) Applying the rule provision would cause confusion or would be misleading to consumers;
2. (2) The rule provision is in whole or in part inapplicable to the given circumstances;
3. (3) There are specific circumstances unique to the situation such that strict compliance with the rule would be onerous without promoting the objective or intent of the rule provision; or
4. (4) Any other similar extenuating circumstances exist such that application of an alternative standard or procedure better promotes the objective or intent of the rule provision.

(d) A request for a waiver shall specify the basis for the waiver and proposed alternative, if any.

1. 1. The nationwide data may be viewed as a more representative and credible indicator where the data for claims reported and denied for your state are small in number.
2. 2. Example—home health care claim filed under a nursing home only policy.
3. 3. Example—a facility that does not meet the minimum level of care requirements or the licensing requirements as outlined in the policy.

4. 4. Examples—a benefit trigger not met, certification by a licensed health care practitioner not provided, no plan of care.

   APPENDIX F

   Instructions: Insurers shall provide all of the following information to the applicant regarding premium, premium adjustments, potential premium increases, and policyholder options in the event of a premium increase except as noted below. This form does not need to be provided in the event the policy does not reserve the right to increase rates.

   As used in this Appendix:

   “Policy” shall mean policy, certificate, or rider, as applicable.

   “Premium” shall include premium schedules, as applicable.

   Companies may substitute whichever term is appropriate to reflect the long-term care insurance for which the applicant is applying.

   Long-Term Care Insurance

   Potential Premium Increase Disclosure Form

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   This policy is guaranteed renewable. Companies can increase the premiums for guaranteed renewable policies in the future. The company cannot increase your premiums because you are older or your health declines. It can increase premiums based on the experience of all individuals with a policy like yours.

5. 1. What Is Your Premium?

   The agent/company has quoted you a premium of [$________] for this policy. This is not a final premium. The premium might change during the underwriting process or if you choose different benefits. The premium you’ll be required to pay for your policy will be [shown on the schedule page of] [will be attached to] your policy.

6. 2. How Will I Know If My Premium Is Changing?

   The company will send you a notice. The notice will include the new premium and when you will start paying it. It also will give you ways you could avoid paying a higher premium. One likely choice will be to keep your insurance policy, but with fewer or lower benefits than you bought. Another choice may be to stop paying premiums and have a “paid-up” policy with fewer or lower benefits than the policy you bought. You may have other choices.

   *Contingent Nonforfeiture

   If the premium rate for your policies goes up in the future and you didn't buy a nonforfeiture option, you may be eligible for contingent nonforfeiture. Here's how to tell if you are eligible:

   You will keep some long-term care insurance coverage, if:

   if !supportLists?· endif?Your premium after the increase exceeds your original premium by the percentage shown (or more) in the following table; and

   if !supportLists?· endif?You lapse (not pay more premiums) within 120 days of the increase.

   The amount of coverage (i.e., new lifetime maximum benefit amount) you will keep will equal the total amount of premiums you've paid since your policy was first issued. If you have already received benefits under the policy, so that the remaining maximum benefit amount is less than the total amount of premiums you've paid, the amount of coverage will be that remaining amount.

   Except for this reduced lifetime maximum benefit amount, all other policy benefits will remain at the levels attained at the time of the lapse and will not increase thereafter.

   Should you choose this Contingent Nonforfeiture option, your policy, with this reduced maximum benefit amount, will be considered "paid-up" with no further premiums due.

   Example:

   if !supportLists?· endif?You bought the policy at age 65 and paid the $1,000 annual premium for 10 years, so you have paid a total of $10,000 in premium.

   if !supportLists?· endif?In the eleventh year, you receive a rate increase of 50%, or $500 for a new annual premium of $1,500, and you decide to lapse the policy (not pay any more premiums).

   if !supportLists?· endif?Your "paid-up" policy benefits are $10,000 (provided you have at least $10,000 of benefits remaining under your policy.)

   Contingent Nonforfeiture

   Cumulative Premium Increase over Initial Premium

   That qualifies for Contingent Nonforfeiture

   (Percentage increase is cumulative from date of original issue. It does NOT represent a one-time increase.)

   Issue Age

   Percent Increase Over Initial Premium

   29 and under

   200%

   30-34

   190%

   35-39

   170%

   40-44

   150%

   45-49

   130%

   50-54

   110%

   55-59

   90%

   60

   70%

   61

   66%

   62

   62%

   63

   58%

   64

   54%

   65

   50%

   66

   48%

   67

   46%

   68

   44%

   69

   42%

   70

   40%

   71

   38%

   72

   36%

   73

   34%

   74

   32%

   75

   30%

   76

   28%

   77

   26%

   78

   24%

   79

   22%

   80

   20%

   81

   19%

   82

   18%

   83

   17%

   84

   16%

   85

   15%

   86

   14%

   87

   13%

   88

   12%

   89

   11%

   90 and over

   10%

   [The following contingent nonforfeiture disclosure need only be included for those limited pay policies to which Ins 3601.27(d)(4) and (d)(6) of the rule are applicable].

   In addition to the contingent nonforfeiture benefits described above, the following reduced "paid-up" contingent nonforfeiture benefit is an option in all policies that have a fixed or limited premium payment period, even if you selected a nonforfeiture benefit when you bought your policy. If both the reduced "paid-up" benefit AND the contingent benefit described above are triggered by the same rate increase, you can chose either of the two benefits.

   You are eligible for the reduced "paid-up" contingent nonforfeiture benefit when all three conditions shown below are met:

7. 1. The premium you are required to pay after the increase exceeds your original premium by the same percentage or more shown in the chart below:

   Triggers for a Substantial Premium Increase

   Issue Age

   Percent Increase

   Over Initial Premium

   Under 65

   50%

   65-80

   30%

   Over 80

   10%

8. 2. You stop paying your premiums within 120 days of when the premium increase took effect; AND

9. 3. The ratio of the number of months you already paid premiums is 40% or more than the number of months you originally agreed to pay.

   If you exercise this option your coverage will be converted to reduced "paid-up" status. That means there will be no additional premiums required. Your benefits will change in the following ways:

10. a. The total lifetime amount of benefits your reduced paid up policy will provide can be determined by multiplying 90% of the lifetime benefit amount at the time the policy becomes paid up by the ratio of the number of months you already paid premiums to the number of months you agreed to pay them.

11. b. The daily benefit amounts you purchased will also be adjusted by the same ratio.

    If you purchased lifetime benefits, only the daily benefit amounts you purchased will be adjusted by the applicable ratio.

    Example:

    if !supportLists?· endif?You bought the policy at age 65 with an annual premium payable for 10 years.

    if !supportLists?· endif?In the sixth year, you receive a rate increase of 35% and you decide to stop paying premiums.

    if !supportLists?· endif?Because you have already paid 50% of your total premium payments and that is more than the 40% ratio, your "paid up" policy benefits are .45 (.90 times .50) times the total benefit amount that was in effect when you stopped paying your premiums. If you purchased inflation protection, it will not continue to apply to the benefits in the reduced "paid-up" policy.

    APPENDIX G

    Long-Term Care Insurance

    Replacement and Lapse Reporting Form

    For the State of ________________________ For the Reporting Year of _____________________

    Company Name: __________________________________ Due: June 30 annually

    Company Address: _____________________________Company NAIC Number: ____________

    Contact Person: ______________________________Phone Number: (___)____________

    Instructions:

    The purpose of this form is to report on a statewide basis information regarding long-term care insurance policy replacements and lapses. Specifically, every insurer shall maintain records for each producer on that producer's amount of long-term care insurance replacement sales as a percent of the producer's total annual sales and the amount of lapses of long-term care insurance policies sold by the producer as a percent of the producer's total annual sales. The tables below should be used to report the ten percent (10%) of the insurer's producers with the greatest percentages of replacements and lapses.

    Listing of the 10% of Producers with the Greatest Percentage of Replacements

    Producer's Name

    Number of Policies Sold By This Producer

    Number of Policies Replaced By This Producer

    Number of Replacements As % of Number Sold By This Producer

    Listing of the 10% of Producers with the Greatest Percentage of Lapses

    Producer's Name

    Number of Policies Sold By This Producer

    Number of Policies Lapsed by This Producer

    Number of Lapses As % of Number Sold By This Producer

    Company Totals

    Percentage of Replacement Policies Sold to Total Annual Sales ____%

    Percentage of Replacement Policies Sold to Policies In Force (as of the end of the preceding

    calendar year) ____%

    Percentage of Lapse Policies to Total Annual Sales _____%

    Percentage of Lapse Policies to Policies in Force (as of the end of the preceding calendar year) ____%

    APPENDIX H

    Guidelines for Long-Term Care Independent Review Entities

    In order for an organization to qualify as an independent review organization for long-term care insurance benefits trigger decisions, it shall comply with all of the following:

12. a. The independent review organization shall ensure that all health care professionals on its staff and with whom it contracts to provide benefit trigger determination reviews hold a current unrestricted license or certification to practice a health care profession in the United States.
13. b. The independent review organization shall ensure that any health care professional on its staff and with whom it contracts to provide benefit trigger determination reviews who is a physician holds a current certification by a recognized American medical specialty board in a specialty appropriate for determining an insured's functional or cognitive impairment.
14. c. The independent review organization shall ensure that any health care professional on its staff and with whom it contracts to provide benefit trigger determination reviews who is not a physician holds a current certification in the specialty in which that person is licensed, by a recognized American specialty board in a specialty appropriate for determining an insured's functional or cognitive impairment.
15. d. The independent review organization shall ensure that all health care professionals on its staff and with whom it contracts to provide benefit trigger determination reviews have no history of disciplinary actions or sanctions including, but not limited to, the loss of staff privileges or any participation restriction taken or pending by any hospital or state or federal government regulatory agency.
16. e. The independent review organization shall ensure that neither it, nor any of its employees, agents, or licensed health care professionals utilized for benefit trigger determination reviews receives compensation of any type that is dependent on the outcome of the review.
17. f. The independent review organization shall ensure that neither it, nor any of its employees, agents, or licensed health care professionals it utilizes for benefit trigger determination reviews are in any manner related to, employed by or affiliated with the insurer, insured or with a person who previously provided medical care or long term care services to the insured.
18. g. The independent review organization shall provide a description of the qualifications of the reviewers retained to conduct independent review of long-term care insurance benefit trigger decisions, including the reviewer's current and past employment history, practice affiliations and a description of past experience with decisions relating to long-term care, functional capacity, dependency in activities of daily living, or in assessing cognitive impairment. Specifically, with regard to reviews of tax qualified long-term care insurance contracts, it must demonstrate the ability to assess the severity of cognitive impairment requiring substantial supervision to protect the individual from harm, or with assessing deficits in the ability to perform without substantial assistance from another person at least two activities of daily living for a period of at least 90 days due to a loss of functional capacity.
19. h. The independent review organization shall provide a description of the procedures employed to ensure that reviewers conducting independent reviews are appropriately licensed, registered or certified; trained in the principles, procedures and standards of the independent review organization; and knowledgeable about the functional or cognitive impairments associated with the diagnosis and disease staging processes, including expected duration of such impairment, which is the subject of the independent review.
20. i. The independent review organization shall provide the number of reviewers retained by the independent review organization and a description of the areas of expertise available from such reviewers and the types of cases such reviewers are qualified to review (e.g., assessment of cognitive impairment or inability to perform activities of daily living due to a loss of functional capacity).
21. j. The independent review organization shall provide a description of the policies and procedures employed to protect confidentiality of protected health information, in accordance with federal and state law.
22. k. The independent review organization shall provide a description of its quality assurance program.
23. l. The independent review organization shall provide the names of all corporations and organizations owned or controlled by the independent review organization or which own or control the organization, and the nature and extent of any such ownership or control. The independent review organization shall ensure that neither it, nor any of its employees, agents, or licensed health care professionals utilized are not a subsidiary of, or owned or controlled by, an insurer or by a trade association of insurers of which the insured is a member.
24. m. The independent review organization shall provide the names and resumes of all directors, officers and executives of the independent review organization.

Source. #13400, eff 6-22-22

APPENDIX A

Rescission Reporting Form for

Long-Term Care Policies

For The State Of _____________

For The Reporting Year 20[ ]

Company Name: _______________________________________________________________

Address: _______________________________________________________________

____________________________________________________________________________

Phone Number: _______________________________________________________________

Due: March 1 annually

Instructions:

The purpose of this form is to report all rescissions of long-term care insurance policies or certificates. Those rescissions voluntarily effectuated by an insured are not required to be included in this report. Please furnish one form per rescission.

Date of Date/s

Policy Policy and Name of Policy Claim/s Date of

Form # Certificate # Insured Issuance Submitted Rescission

Detailed reason for rescission:________________________________________________________________

________________________________________________________________________________________

________________________________________________________________________________________

________________________________________________________________________________________

________________________________________________________________________________________

_____________________________________

Signature

_____________________________________

Name and Title (please type)

____________________________________

Date

APPENDIX B

Long-Term Care Insurance

Personal Worksheet

This worksheet will help you understand some important information about this type of insurance. State law requires companies issuing this [policy] [certificate] [rider] to give you some important facts about premiums and premium increases and to ask you some important questions to help you and the company decide if you should buy this [policy] [certificate] [rider]. Long-term care insurance can be expensive and it may not be right for everyone.

Premium Information

The premium for the coverage you are considering will be [$_________ per [insert payment interval] or a total of [$_______ per year] [a one-time single premium of $____________].

The premium quoted in this worksheet is not guaranteed and may change during the underwriting process and in the future while this [policy] [certificate] [rider] is in force.

Type of Policy & The Company's Right to Increase Premiums on the Coverage You Choose:

[Noncancellable - The company cannot increase your premiums on this [policy] [certificate] [rider]].

[Guaranteed renewable - The company can increase your premiums on this [policy] [certificate] [rider] in the future if it increases the premiums for all [policies] [certificates] [riders] like yours in this state.]

[Paid-up - This [policy] [certificate] [rider] will be paid-up after you have paid all of the premiums specified in your [policy] [certificate] [rider]].

Premium Increase History

[Name of company] has sold long-term care insurance since [year] and has sold this [policy] [certificate] [rider] since [year].

[The company has never increased its premiums for any long-term care [policy] [certificate] [rider] it has sold in this state or any other state.]

[The company has not increased its premiums for this [policy] [certificate] [rider] or similar [policies] [certificates] [riders] in this state or any other state in the last 10 years.]

[The company has increased its premiums on this [policy] [certificate] [rider] or similar [policies] [certificates] [riders] in the last 10 years. A summary of those premium increases follows.]

(Note: The company may substitute the language below for the last sentence in the paragraph above and include the full summary as an attachment to this worksheet. “Over the past 3 years, the company has increased premiums by ___%.” “A summary of premium increases in the last 10 years is attached to this worksheet.”

Companies that have increased premiums by 30% or more in the last ten years must include the following statement: “There was a 30% or greater premium increase in _____[insert year].” “A summary of premium increases in the last 10 years is attached to this worksheet.”)

Questions About Your Income

You do not have to answer the questions that follow. They are intended to make sure you have thought about how you’ll pay premiums and the cost of care your insurance does not cover. If you do not want to answer these questions, you should understand that the company might refuse to insure you.

What resources will you use to pay your premium? □Current income from employment □Current income from investments □Other current income □Savings □Sell investments □Sell other assets □Money from my family □Other _______________

If you will be paying premiums with money received only from your own income, a rule of thumb is that you may not be able to afford this [policy] [certificate] [rider] if the premiums will be more than 7% of your income.

Could you afford to keep this [policy] [certificate] [rider] if your spouse or partner dies first?

□Yes □ No □Had not thought about it □Do not know □Does not apply

What would you do if the premiums went up, for example, by 50%?

□[Pay the higher premium □Call the company/agent □Reduce benefits □Drop the [policy] [certificate] [rider] □Do not know]

(Note: The company is not required to use the bracketed question above if the coverage is fully paid up or is noncancellable.)

What is your household annual income from all sources? (check one)

□[Less than $10,000] □$[10,000-19,999] □$[20,000-29,999] □$[30,000-50,000] □[More than $50,000]

Do you expect your income to change over the next 10 years? (check one)

□No □Yes, expect increase □Yes, expect decrease

If you plan to pay premiums from your income, have you thought about how a change in your income would affect your ability to continue to pay the premium?

□ Yes □ No □Do not know

Will you buy inflation protection? (check one)

□ Yes □ No

Inflation may increase the cost of long-term care in the future.

If you do not buy inflation protection, how will you pay for the difference between future costs and your daily benefit amount?

□From my income □From savings □From investments □Sell other assets □Money from my family □Other

The national average annual cost of long-term care in [insert year] was [insert $ amount], but this figure varies across the country. In ten years the national average annual cost would be about [insert $ amount] if costs increase 5% annually.

What [elimination period][waiting period][cash deductible] are you considering?

[Number of days ________ in [elimination period][waiting period]

Approximate cost of care for this period: $_________

($xxx per day times number of days in [elimination period] [waiting period], where “xxx” represents the most recent estimate of the national daily average cost of long-term care)]

[Cash Deductible $________]

How do you plan to pay for your care during the [elimination period] [waiting period] [deductible period]? (check all that apply)

□From my income □From my savings/investments □My family will pay

Questions About Your Savings and Investments

Not counting your home, about how much are all of your assets (your savings and investments) worth? (check one) □[Less than $20,000] □[$20,000-$29,999] □[$30,000-$49,999] □ [More than $50,000]

Do you expect the value of your assets to change over the next ten years? (check one)

□No □Yes, expect to increase □Yes, expect to decrease

If you’re buying this [policy] [certificate] [rider] to protect your assets and your assets are less than $50,000, experts suggest you think about other ways to pay for your long-term care.

Disclosure Statement

□ The answers to the questions above describe my financial situation.

Or

□I choose not to complete this information.

(Check one.)

□ I agree that the company and/or its agent (below) has reviewed this worksheet with me including the premium, premium increase history and potential for premium increases in the future. I understand the information contained in this worksheet. (This box must be checked.)

(Note: For direct mail situations, the lead in sentence should be changed to “I agree that I have reviewed this worksheet including the premium….”)

Signed:____________________________________________________________

(Applicant) (Date)

[□I explained to the applicant the importance of answering these questions.

Signed:____________________________________________________________

(Agent) (Date)

Agent’s Printed Name:____________________________________________]

[In order for us to process your application, please return this signed worksheet to [name of company], along with your application.]

[My agent has advised me that this long-term care insurance [policy] [certificate] [rider] does not seem to be suitable for me. However, I still want the company to consider my application.

Signed:______________________________________________________________]

(Applicant) (Date)

(Note: Choose the appropriate sentences depending on whether this is a direct mail or agent sale.)

Someone from the company may contact you to discuss your answers and the suitability of this [policy] [certificate] [rider] for you.

APPENDIX C

Things You Should Know Before You Buy

Long-Term Care Insurance

Long-Term *A long-term care insurance policy may pay most of the costs of your care in a nursing

Care home. Many policies also pay for care at home or other community settings. Since

Insurance polices can vary in coverage, you should read this policy and make sure you understand

what it covers before you buy it.

*[You should not buy this insurance policy unless you can afford to pay the premiums

every year.] [Remember that the company can increase premiums in the future.]

*The personal worksheet includes questions designed to help you and the company

determine whether this policy is suitable for your needs.

Medicare *Medicare does not pay for most long-term care.

Medicaid *Medicaid will generally pay for long-term care if you have very little income and few

assets. You probably should not buy this policy if you are now eligible for Medicaid.

*Many people become eligible for Medicaid after they have used up their own financial

resources by paying for long-term care services.

*When Medicaid pays your spouse's nursing home bills, you are allowed to keep your

house and furniture, a living allowance, and some of your joint assets.

*Your choice of long-term care services may be limited if you are receiving Medicaid. To

learn more about Medicaid, contact your local or state Medicaid agency.

Shopper’s *Make sure the insurance company or agent gives you a copy of a book called the National

Guide Association of Insurance Commissioners’ “Shopper's Guide to Long-Term Care

Insurance”. Read it carefully. If you have decided to apply for long-term care

insurance, you have the right to return the policy within 30 days and get back any

premium you have paid if you are dissatisfied for any reason or choose not to purchase

the policy.

Counseling *Free counseling and additional information about long-term care insurance are available

through your state's insurance counseling program. Contact your state insurance

department or department on aging for more information about the senior health

insurance counseling program in your state.

Facilities *Some long-term care insurance contracts provide for benefit payments in certain facilities

only if they are licensed or certified, such as in assisted living centers. However, not all

states regulate these facilities in the same way. Also, many people move into a different

state from where they purchased their long-term care insurance policy. Read the policy

carefully to determine what types of facilities qualify for benefit payments, and to

determine payment for a covered service will be made if you move to a state that has a

different licensing scheme for facilities than the one in which you purchased the policy.

APPENDIX D

Long-Term Care Insurance Suitability Letter

Dear [Applicant]:

Your recent application for long-term care insurance included a “personal worksheet,” which asked questions about your finances and your reasons for buying long-term care insurance. For your protection, state law requires us to consider this information when we review your application, to avoid selling a policy to those who may not need coverage.

[Your answers indicate that long-term care insurance may not meet your financial needs. We suggest that you review the information provided along with your application, including the booklet “Shopper’s Guide to Long-Term Care Insurance” and the page titled “Things You Should Know Before Buying Long-Term Care Insurance. ” Your state insurance department also has information about long-term care insurance and may be able to refer you to a counselor free of charge who can help you decide whether to buy this policy.]

[You chose not to provide any financial information for us to review.]

We have suspended our final review of your application. If, after careful consideration, you still believe this policy is what you want, check the appropriate box below and return this letter to us within the next 60 days. We will then continue reviewing your application and issue a policy if you meet our medical standards.

If we do not hear from you within the next 60 days, we will close your file and not issue you a policy. You should understand that you will not have any coverage until we hear back from you, approve your application and issue you a policy.

Please check one box and return in the enclosed envelope.

□ Yes, [although my worksheet indicates that long-term care insurance may not be a suitable purchase,] I wish to purchase this coverage. Please resume review of my application.

□ No. I have decided not to buy a policy at this time. _________________________________________________ ___________________________________ APPLICANT’S SIGNATURE DATE

Please return to [issuer] at [address] by [date].

APPENDIX E

Claims Denial Reporting Form

Long-Term Care Insurance

For the State of ______________________________________________

For the Reporting Year of _____________________________________

Company Name: ___________________________________________ Due: June 30 annually

Company Address: ________________________________________________________________________

_______________________________________________________________________________________

Company NAIC Number: _________________________________________________________

Contact Person: __________________________________ Phone Number: _____________________

Line of Business: Individual Group

Instructions

The purpose of this form is to report all long-term care claim denials under in force long-term care insurance policies. Indicate the manner of reporting by checking one of the boxes below:

 Per Claimant - counts each individual who makes one or a series of claim requests.

 Per Transaction - counts each claim payment request.

“Denied” means a claim that is not paid for any reason other than for claims not paid for failure to meet the waiting period or because of an applicable preexisting condition. It does not include a request for payment that is in excess of the applicable contractual limits.

Inforce Data

State

Data

Nationwide

Data

Total Number of Inforce Policies [Certificates] as of December 31^st

Claims & Denial Data

State

Data

Nationwide

Data^[1][1]

1

Total Number of Long-Term Care Claims Reported

2

Total Number of Long-Term Care Claims Denied/Not Paid

3

Number of Claims Not Paid due to Preexisting Condition Exclusion

4

Number of Claims Not Paid due to Waiting (Elimination) Period Not Met

5

Net Number of Long-Term Care Claims Denied for Reporting Purposes (Line 2 Minus Line 3 Minus Line 4)

6

Percentage of Long-Term Care Claims Denied of Those Reported

(Line 5 Divided by Line 1)

7

Number of Long-Term Care Claims Denied due to:

8

· Long-Term Care Services Not Covered under the Policy^[2][2]

9

· Provider/Facility Not Qualified under the Policy^[3][3]

10

· Benefit Eligibility Criteria Not Met^[4][4]

11

· Other