§ 351A-8 — Outline of coverage

(a) An outline of coverage shall be delivered to a prospective applicant for long-term care insurance at the time of initial solicitation through means which prominently direct the attention of the recipient to the document and its purpose. (1) The Director shall prescribe a standard format including style, arrangement and overall appearance and the content of an outline of coverage. (2) In the case of agent solicitations, an agent must deliver the outline of coverage prior to the presentation of an application or enrollment form. (3) In the case of direct response solicitations, the outline of coverage must be presented in conjunction with any application or enrollment form. (b) The outline of coverage shall include: (1) A description of the principal benefits and coverage provided in the policy. (2) A statement of the principal exclusions, reductions and limitations contained in the policy. (3) A statement of the terms under which the policy or certificate, or both, may be continued in force or discontinued, including any reservation in the policy of a right to change premium. Continuation or conversion provisions of group coverage shall be specifically described. (4) A statement that the outline of coverage is a summary only, not a contract of insurance, and that the policy or group master policy contain governing contractual provisions. (5) A description of the terms under which the policy or certificate may be returned and premium refunded. (6) A brief description of the relationship of cost of care and benefits. (7) A statement that discloses to the policyholder or certificate holder whether the policy is intended to be a federally tax-qualified long-term care insurance contract under 7702B(b) of the Internal Revenue Code of 1986, as amended.

Legislative History

(Source: P.A. 92-148, eff. 7-24-01.)