§ 10-19-113.4 — Nonforfeiture benefits - rules

Colorado § 10-19-113.4

• Jurisdiction: Colorado
• Title 10: Insurance
• Art.: Long-term Care Insurance

Text

(1) Except as provided in
subsection (2) of this section, a long-term care insurance policy may not be
delivered or issued for delivery in this state unless the policyholder or certificate
holder has been offered the option of purchasing a policy or certificate including a
nonforfeiture benefit. The offer of a nonforfeiture benefit may be in the form of a
rider that is attached to the policy. If the policyholder or certificate holder declines
the nonforfeiture benefit, the insurer shall provide a contingent benefit upon lapse
that shall be available for a specified period.

(2) When a group long-term care insurance policy is issued, the offer
required in subsection (1) of this section shall be made to the group policyholder;
except that, if the policy is issued as group long-term care insurance as defined in
section 10-19-103 (4)(d), other than to a continuing care retirement community or
other similar entity, the offer shall be made to each proposed certificate holder.

(3) The commissioner shall promulgate rules specifying the type or types of
nonforfeiture benefits to be offered as part of long-term care insurance policies
and certificates, the standards for nonforfeiture benefits, and the rules regarding
contingent benefit upon lapse, including a determination of the specified period
during which a contingent benefit upon lapse will be available and the substantial
premium rate increase that triggers a contingent benefit upon lapse as described in
subsection (1) of this section.

Legislative History

Source: L. 2007: Entire section added, p. 204, � 12, effective January 1, 2008.