Ch. 681                                       LAWS OF MARYLAND

the loan shall be applied to the purposes authorized in § 8-129
of the State Finance and Procurement Article.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect June 1, 1989.

Approved May 25, 1989.

CHAPTER 681

(House Bill 694)

AN ACT concerning

Long-Term Care Insurance

FOR the purpose of prohibiting an insurer that offers long-term
care insurance from canceling, refusing to renew, or
terminating the policy or contract because of the age or
deterioration of the mental or physical health of the
insured or certificate holder; authorizing the Insurance
Commissioner to adopt regulations relating to long-term care
insurance regarding disclosures, eligibility, renewals,
coverage for dependents, continuation and conversion,
probationary periods, limitation of coverage, recurrent
conditions, loss ratio standards, preexisting conditions,
nonduplication of coverage, and any matter the Insurance
Commissioner determines is in the public interest;
prohibiting long-term care insurance policies or contracts
from containing new waiting periods; specifying that
long-term insurance policies or contracts may not limit
coverage to coverage for skilled nursing care only, provide
a disproportionate amount of skilled nursing care, or use
certain restrictive preexisting condition provisions;
prohibiting an insurer from requiring prior
institutionalization as a condition, limitation, or
restriction for benefits and prohibiting certain policy or
contract exclusions; specifying certain procedures for the
cancellation of long-term care insurance and requiring the
refund of a premium paid, under certain circumstances;
requiring the disclosure of certain policy or contract
provisions; requiring that long-term care insurance policies
and contracts provide coverage for mental or nervous
disorders, including Alzheimer's disease or other senile
dementia disorders, except in certain circumstances;
prohibiting a premium increase under long-term care
insurance policies or contracts based on the age of the
insured or certificate holder, except in certain

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