2003 Minnesota Statutes

     62S.13 Incontestability period. 

    Subdivision 1.    Rescission before six months.  For a 
 policy or certificate that has been in force for less than six 
 months, an insurer may rescind a long-term care insurance policy 
 or certificate or deny an otherwise valid long-term care 
 insurance claim upon a showing of misrepresentation that is 
 material to acceptance for coverage. 

    Subd. 2.    Rescission after six months.  For a policy 
 or certificate that has been in force for at least six months, 
 but less than two years, an insurer may rescind a long-term care 
 insurance policy or certificate or deny an otherwise valid 
 long-term care insurance claim upon a showing of 
 misrepresentation that is both material to the acceptance for 
 coverage and that pertains to the condition for which benefits 
 are sought. 

    Subd. 3.    Contested policy after two years.  After a 
 policy or certificate has been in force for two years, it is not 
 contestable upon the grounds of misrepresentation alone.  The 
 policy or certificate may be contested only upon a showing that 
 the insured knowingly and intentionally misrepresented relevant 
 facts relating to the insured's health. 

    Subd. 4.    Field issue prohibition.  A long-term care 
 insurance policy or certificate may not be field issued based on 
 medical or health status.  For purposes of this section, "field 
 issued" means a policy or certificate issued by an agent or a 
 third-party administrator under the underwriting authority 
 granted to the agent or third-party administrator by an insurer. 

    Subd. 5.    Benefit payments not recoverable.  If an 
 insurer has paid benefits under the long-term care insurance 
 policy or certificate, the benefit payments may not be recovered 
 by the insurer in the event that the policy or certificate is 
 rescinded. 

    HIST: 1997 c 71 art 1 s 13