§ 26-38-109 — Nonforfeiture benefit provisions

Wyoming § 26-38-109

• Jurisdiction: Wyoming
• Title 26: Insurance Code
• Ch. 38: LONG-TERM CARE INSURANCE

Text

(a) Subject to subsection (g) of this section, an insurer
that offers a long-term care insurance policy or certificate in
this state shall offer a nonforfeiture protection provision as
an option. The nonforfeiture benefit shall be made available in
the event of a default in the payment of any premiums, or upon
the surrender of the policy or certificate by the policyholder
or certificate holder.
(b) Subject to subsection (g) of this section, the
nonforfeiture provision offered for a policy which is not
intended to be a qualified long-term insurance contract, shall
be appropriately captioned and shall provide at least one (1) of
the following:
(i) Reduced paid-up insurance;
(ii) Extended term insurance;
(iii) Cash surrender values;
(iv) A return of premium;
(v) A shortened benefit period; or
(vi) Other offerings as approved by the commissioner.
(c) Nonforfeiture benefits shall be computed in an
actuarially sound manner, using a methodology that has been
filed with and approved by the commissioner. At the time of
lapse, or upon request by the policyholder or certificate
holder, the insurer shall disclose the then-accrued
nonforfeiture values. At the time the policy or certificate is
issued, the insurer shall provide to the policyholder or
certificate holder schedules demonstrating estimated values of
nonforfeiture benefits. The schedules shall state that the
estimated values are not to be construed as guaranteed
nonforfeiture values.
(d) The amount of nonforfeiture benefits shall be adjusted
subsequent to being initially granted only as necessary to
reflect changes in claims, persistency and interest as reflected
in changes in rates for premium paying policies approved by the
commissioner for the same policy form.
(e) This section does not apply to life insurance policies
or riders containing accelerated long-term care benefits.
(f) Nonforfeiture benefits for qualified long-term care
insurance contracts shall include at least a reduced paid-up
insurance benefit, an extended term insurance benefit, the offer
of a shortened benefit period, or other similar offerings
approved by the secretary of the treasury, and shall be provided
as specified in regulations. The issuer of such a contract may
refund premiums upon complete surrender or cancellation of the
contract or policy, as long as the refund does not exceed the
aggregate premiums paid for the contract or policy.
(g) Within fifteen (15) business days following receipt of
written proof of the death of an insured, an insurer under this
chapter shall refund unearned premiums paid for any period
beyond the death of the insured. The amount of the refund shall
be pro rata from the date of death.