1997 Minnesota Statutes

     62S.20 Required disclosure provisions. 

    Subdivision 1.    Renewability.  Individual long-term 
 care insurance policies must contain a renewability provision 
 that is appropriately captioned, appears on the first page of 
 the policy, and clearly states the duration, where limited, of 
 renewability and the duration of the term of coverage for which 
 the policy is issued and for which it may be renewed.  This 
 subdivision does not apply to policies which are part of or 
 combined with life insurance policies which do not contain a 
 renewability provision and under which the right to nonrenew is 
 reserved solely to the policyholder. 

    Subd. 2.    Riders and endorsements.  Except for riders 
 or endorsements by which the insurer effectuates a request made 
 in writing by the insured under an individual long-term care 
 insurance policy, all riders or endorsements added to an 
 individual long-term care insurance policy after date of issue 
 or at reinstatement or renewal which reduce or eliminate 
 benefits or coverage in the policy must require signed 
 acceptance by the individual insured.  After the date of policy 
 issue, a rider or endorsement which increases benefits or 
 coverage with a concomitant increase in premium during the 
 policy term must be agreed to, in writing, signed by the 
 insured, except if the increased benefits or coverage are 
 required by law.  Where a separate additional premium is charged 
 for benefits provided in connection with riders or endorsements, 
 the premium charge must be specified in the policy, rider, or 
 endorsement. 

    Subd. 3.    Payment of benefits.  A long-term care 
 insurance policy which provides for the payment of benefits 
 based on standards described as "usual and customary," 
 "reasonable and customary," or similar words must include a 
 definition and an explanation of the terms in its accompanying 
 outline of coverage. 

    Subd. 4.    Limitations.  If a long-term care insurance 
 policy or certificate contains any limitations with respect to 
 preexisting conditions, the limitations must appear as a 
 separate paragraph of the policy or certificate and must be 
 labeled as "preexisting condition limitations." 

    Subd. 5.    Other limitations or conditions on eligibility 
 for benefits.  A long-term care insurance policy or 
 certificate containing any limitations or conditions for 
 eligibility other than those prohibited in section 62S.06 shall 
 provide a description of the limitations or conditions, 
 including any required number of days of confinement, in a 
 separate paragraph of the policy or certificate and shall label 
 the paragraph "limitations or conditions on eligibility for 
 benefits." 

    Subd. 6.    Qualified long-term care insurance policy.  
 A qualified long-term care insurance policy must include a 
 disclosure statement in the policy that the policy is intended 
 to be a qualified long-term care insurance policy. 

    HIST: 1997 c 71 art 1 s 20