WILLIAM DONALD SCHAEFER, Governor                            Ch. 242

(2)      AN ILLUSTRATION OF THE AMOUNT OF BENEFITS, THE LENGTH OF
THE BENEFIT, AND THE GUARANTEED LIFETIME BENEFITS FOR EACH COVERED
PERSON; AND

(3)      ANY EXCLUSION, REDUCTION, AND LIMITATION ON BENEFITS OF
LONG-TERM CARE.

647.1.

BEFORE ISSUING A LONG-TERM CARE INSURANCE POLICY TO AN APPLICANT
WHO IS 80 YEARS OF AGE OR OLDER, IF THE POLICY IS NOT GUARANTEED ISSUE THE
INSURER SHALL OBTAIN:

(1)      A REPORT OF A PHYSICAL EXAMINATION;

(2)      AN ASSESSMENT OF FUNCTIONAL CAPACITY; OR

(3)      COPIES OF MEDICAL RECORDS.

647.2.

ON OR BEFORE JULY 1 OF EACH YEAR, AN INSURER ISSUING A LONG TERM
CARE INSURANCE POLICY IN THE STATE SHALL FILE WITH THE COMMISSIONER A
REPORT ON THE LAPSE RATES, REPLACEMENT RATES, AND RESCISSION RATES FOR
POLICIES BY AGENT.

(A)     THE REQUIREMENTS OF THIS SECTION:

(1)      APPLY TO INDIVIDUAL AND GROUP LONG-TERM CARE INSURANCE;
AND

(2)      DO NOT APPLY TO LIFE INSURANCE POLICIES OR RIDERS ON LIFE
INSURANCE POLICIES CONTAINING ACCELERATED LONG-TERM CARE BENEFITS.

(B)      AN INSURER MAY NOT OFFER A LONG-TERM CARE INSURANCE POLICY
OR CERTIFICATE UNLESS, AT THE TIME OF PURCHASE, THE INSURER ALSO OFFERS
THE APPLICANT THE OPTION TO PURCHASE A POLICY OR CERTIFICATE THAT
PROVIDES, IN ADDITION TO ANY OTHER INFLATION PROTECTION, FOR BENEFIT
LEVELS TO INCREASE WITH BENEFIT MAXIMUMS OR REASONABLE DURATIONS
THAT ARE MEANINGFUL TO ACCOUNT FOR REASONABLY ANTICIPATED INCREASES
IN THE COSTS OF LONG-TERM CARE SERVICES COVERED BY THE POLICY OR
CERTIFICATE.

(C)     THE OPTION TO PURCHASE A POLICY WITH AN INFLATION PROTECTION
FEATURE UNDER THIS SECTION SHALL BE NO LESS FAVORABLE THAN:

(1) A POLICY OR CERTIFICATE THAT INCREASES BENEFIT LEVELS
ANNUALLY IN A MANNER SO THAT THE INCREASES ARE COMPOUNDED ANNUALLY
AT A RATE NOT LESS THAN 5 PERCENT;

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