Ch. 35

1997 LAWS OF MARYLAND

A REPORT UNDER THIS SECTION SHALL INCLUDE:

(1) ANY LONG-TERM CARE BENEFITS PAID OUT DURING THE MONTH;

(2) AN EXPLANATION OF ANY CHANGES IN THE POLICY, INCLUDING
CHANGES TO DEATH BENEFITS OR CASH VALUES, THAT RESULT FROM THE
PAYMENT OF LONG-TERM CARE BENEFITS; AND

(3) THE AMOUNT OF LONG-TERM CARE BENEFITS THAT REMAIN.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 647A(c).

In subsection (a) of this section, the reference to "the carrier" providing a
monthly report is new language added to state expressly that which only was
implied in the former law — i.e., the carrier is the person required to provide
a monthly report to the policyholder.

In subsection (b)(2) of this section, the reference to "changes to" death
benefits or cash values is added for clarity.

In subsection (b)(3) of this section, the former reference to the amount of
"existing" long-term care benefits is deleted as unnecessary in light of the
reference to "the amount of long-term benefits that remain".

Defined terms: "Carrier" § 18-101
"Life insurance" § 1-101
"Policy" § 1-101

18-118. CANCELLATION, REFUSAL TO RENEW, OR TERMINATION OF POLICIES.

(A) IN GENERAL.

(1) A CARRIER MAY CANCEL, REFUSE TO RENEW, OR OTHERWISE
TERMINATE LONG-TERM CARE INSURANCE ONLY FOR NONPAYMENT OF PREMIUMS
OR MATERIAL MISREPRESENTATION.

(2) A CARRIER MAY NOT CANCEL A POLICY OF LONG-TERM CARE
INSURANCE UNDER THIS SUBSECTION FOR NONPAYMENT OF PREMIUMS UNLESS
THE CARRIER PROVIDES WRITTEN NOTICE TO:

(I) THE INSURED; AND

(II) AN INDIVIDUAL DESIGNATED BY THE INSURED UNDER
SUBSECTION (B) OF THIS SECTION TO RECEIVE NOTICE OF CANCELLATION NOT
LATER THAN THE DATE ON WHICH THE CARRIER SENDS A SECOND NOTICE OF THE
CANCELLATION.

(B) OPTION TO DESIGNATE INDIVIDUAL TO RECEIVE CANCELLATION
NOTICE.

(1) A CARRIER MAY NOT DELIVER AN INDIVIDUAL POLICY OF
LONG-TERM CARE INSURANCE TO AN INSURED UNTIL THE CARRIER HAS NOTIFIED
THE INSURED OF THE OPTION TO DESIGNATE IN WRITING ONE INDIVIDUAL IN

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