§ 31A-22-1412 — Nonforfeiture benefits.

Utah § 31A-22-1412

• Jurisdiction: Utah
• Title 31A: Insurance Code
• Ch. 31A-22: Contracts in Specific Lines
• Part 31A-22-14: Long-Term Care Insurance Standards

Text

(1) (1)(a) A long-term care insurance policy or certificate 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.
(1)(b) The offer of a nonforfeiture benefit under Subsection (1)(a) may be in the form of a rider that is attached to the policy.
(1)(c) If the policyholder or certificate holder declines the nonforfeiture benefit offered under this Subsection (1), the insurer shall provide a contingent benefit upon lapse of the policy or certificate that is available for a specified period of time following a substantial increase in premium rates.
(1)(d) (1)(d)(i) Except as provided in Subsection (1)(d)(ii), if a group long-term care insurance policy is issued, the offer required in this Subsection (1) shall be made to the group policyholder.
(1)(d)(ii) If the policy is issued to a group authorized under Section 31A-22-509, the offer required under this Subsection (1) shall be made to each proposed certificate holder.
(2) The commissioner shall make rules:

(2)(a) specifying the types of nonforfeiture benefits to be offered as part of a long-term care insurance policy or certificate;
(2)(b) specifying the standards for nonforfeiture benefits; and
(2)(c) regarding contingent benefits upon lapse, including a determination of:
(2)(c)(i) the specified period of time during which a contingent benefit upon lapse will be available as provided in Subsection (1); and
(2)(c)(ii) the substantial premium rate increase that triggers a contingent benefit upon lapse as provided in Subsection (1).

Legislative History

Amended by Chapter 116, 2001 General Session