§ 27-34.2-7.1. Incontestability period.
(a) For a policy or certificate that has been in force for less than six (6) months, an
insurer may rescind a long-term care insurance policy or certificate or deny an otherwise
valid long-term care insurance claim upon a showing of misrepresentation that is material
to the acceptance for coverage.
(b) For a policy or certificate that has been in force for at least six (6) months, but
less than two (2) years, an insurer may rescind a long-term care insurance policy
or certificate or deny an otherwise valid long-term care insurance claim upon a showing
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§ 27-34.2-7.1. Incontestability period.
(a) For a policy or certificate that has been in force for less than six (6) months, an
insurer may rescind a long-term care insurance policy or certificate or deny an otherwise
valid long-term care insurance claim upon a showing of misrepresentation that is material
to the acceptance for coverage.
(b) For a policy or certificate that has been in force for at least six (6) months, but
less than two (2) years, an insurer may rescind a long-term care insurance policy
or certificate or deny an otherwise valid long-term care insurance claim upon a showing
of misrepresentation that is both material to the acceptance for coverage and that
pertains to the condition for which benefits are sought.
(c) After a policy or certificate has been in force for two (2) years, it is not contestable
upon the grounds of misrepresentation alone; the policy or certificate may be contested
only upon a showing that the insured knowingly and intentionally misrepresented relevant
facts relating to the insured's health.
(d) A long-term care insurance policy or certificate may be field issued if the compensation
to the field issuer is not based on the number of policies or certificates issued.
For the purposes of this section, "field issued� means a policy or certificate issued
by a producer or a third-party administrator pursuant to the underwriting authority
granted to the producer or third-party administrator by an insurer and using the insurer's
underwriting guidelines.
(e) If an insurer has paid benefits under the long-term care insurance policy or certificate,
the benefit payments may not be recovered by the insurer in the event that the policy
or certificate is rescinded.
(f) In the event of the death of the insured, this section shall not apply to the remaining
death benefit of a life insurance policy that accelerates benefits for long-term care.
In this situation, the remaining death benefits under these policies shall be governed
by chapter 4 of this title. In all other situations, this section shall apply to life
insurance policies that accelerate benefits for long-term care.