§ 376.1115 — Coverage outline to be delivered to applicants, when, content.

Missouri § 376.1115

• Jurisdiction: Missouri
• Title XXIV: BUSINESS AND FINANCIAL INSTITUTIONS
• Ch. 376: Life, Health and Accident Insurance

Text

1.  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.  The director shall prescribe a standard format, including style, arrangement and overall appearance, and the content of an outline of coverage.  In the case of agent solicitations, an agent shall deliver the outline of coverage prior to the presentation of an application or enrollment form.  In the case of direct response solicitations, the outline of coverage shall be presented in conjunction with any application or enrollment form.  In the case of a policy issued to a group defined in section 376.1100 , an outline of coverage shall not be required to be delivered; provided that the information described in subdivisions (1) to (6) of subsection 2 of this section is contained in other materials relating to enrollment.  Upon request, such other materials shall be made available to the director.

2.  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 the 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 contains 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; and

(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 Section 7702B(b) of the Internal Revenue Code of 1986, as amended.

3.  A certificate issued pursuant to a group long-term care insurance policy which policy is delivered or issued for delivery in this state 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; and

(3)  A statement that the group master policy determines governing contractual provisions.

4.  If an application for a long-term care insurance contract or certificate is approved, the issuer shall deliver the contract or certificate of insurance to the applicant no later than thirty days after the date of approval.

5.  At the time of policy delivery, a policy summary shall be delivered for an individual life insurance policy which provides long-term care benefits within the policy or by rider.  In the case of direct response solicitations, the insurer shall deliver the policy summary upon the applicant's request, but regardless of request shall make such delivery no later than at the time of policy delivery.  In addition to complying with all applicable requirements, the summary shall also include:

(1)  An explanation of how the long-term care benefit interacts with other components of the policy, including deductions from death benefits;

(2)  An illustration of the amount of benefits, the length of benefit, and the guaranteed lifetime benefits, if any, for each covered person;

(3)  Any exclusions, reductions and limitations on benefits of long-term care;

(4)  A statement that any long-term care inflation protection option that may be required by the laws of this state is not available under the policy; and

(5)  If applicable to the policy type, the summary shall also include:

(a)  A disclosure of the effects of exercising other rights under the policy;

(b)  A disclosure of guarantees related to long-term care costs of insurance charges;

(c)  Current and projected maximum lifetime benefits; and

(d)  The provisions of the policy summary listed in paragraphs (a) to (c) of this subdivision may be incorporated into a basic illustration required to be delivered in accordance with sections 375.1509 or into the life insurance policy summary required to be delivered in accordance with section 376.706 .

Legislative History

(L. 1990 S.B. 765 § 6 subsecs. 2 to 5, A.L. 2002 H.B. 1568 merged with S.B. 1009) Transferred 2002; formerly 376.957