§ 26-38-107 — Incontestability period

(a) For a long-term care insurance policy or certificate
that has been in force for less than six (6) months, an insurer
may rescind the policy or certificate or deny any otherwise
valid long-term care insurance claim upon a showing of
misrepresentation that is material to the acceptance of
coverage.
(b) For a long-term care insurance policy or certificate
that has been in force for at least six (6) months but less than
two (2) years, an insurer may rescind the 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 which pertains to the conditions for
which benefits are sought.
(c) After a long-term care insurance policy or certificate
has been in force for two (2) years it is not contestable upon
the grounds of misrepresentation, unless the insured knowingly
and intentionally misrepresented relevant facts relating to the
insured's health.
(d) No long-term care insurance policy or certificate may
be field issued based on medical or health status. For purposes
of this section, "field issued" means a policy or certificate
issued by an agent or a third party administrator pursuant to
the underwriting authority granted to the agent or third party
administrator by an insurer.
(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certificate is rescinded.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) An insurer shall rescind a long-term care policy or
certificate for misrepresentation only as provided in this
section.