WILLIAM DONALD SCHAEFER, Governor                         Ch. 242

(13) PRODUCT FEATURES SUCH AS LONG ELIMINATION PERIODS, HIGH
DEDUCTIBLES, AND HIGH MAXIMUM LIMITS.

649.

(a)     Except as provided in subsection (b) of this section, a premium under
long-term health insurance may not be increased based on the age of the insured or
certificate holder.

(b)      [With the approval of the Commissioner] AFTER SUBMITTING AN
ACTUARIAL MEMORANDUM THAT SUPPORTS THE PROPOSED PREMIUM INCREASE
AND AFTER OBTAINING THE COMMISSIONER'S APPROVAL, an insurer may impose an
across-the-board increase to all long-term health insurance policies or contracts the
insurer issues or delivers in the State.

(c)     This section does not prohibit age-banding.

649.1.

IN ADDITION TO THE PRACTICES PROHIBITED IN THIS ARTICLE, AN INSURER
OR AGENT OF AN INSURER PROVIDING LONG-TERM CARE INSURANCE MAY NOT:

(1) EMPLOY ANY METHOD OF MARKETING HAVING THE EFFECT OF
INDUCING OR TENDING TO INDUCE THE PURCHASE OF LONG-TERM CARE
INSURANCE THROUGH UNDUE PRESSURE;

        (2) MAKE USE OF ANY METHOD OF MARKETING THAT FAILS TO

DISCLOSE IN A CONSPICUOUS MANNER THAT A PURPOSE OF THE METHOD OF
MARKETING IS SOLICITATION OF INSURANCE AND THAT CONTACT WILL BE MADE
BY AN INSURANCE AGENT OR INSURANCE COMPANY; OR

(3) KNOWINGLY MAKE ANY MISLEADING REPRESENTATION OR
INCOMPLETE OR FRAUDULENT COMPARISON OF ANY INSURANCE POLICIES OR
INSURERS FOR THE PURPOSE OF INDUCING ANY PERSON TO LAPSE, FORFEIT,
SURRENDER, TERMINATE, RETAIN, PLEDGE, ASSIGN, BORROW ON, OR CONVERT
ANY INSURANCE POLICY OR TO TAKE OUT A POLICY OF INSURANCE WITH ANOTHER
INSURER.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 1993.

Approved May 11, 1993.

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