2006 Minnesota Statutes

61A.072 POLICIES WITH ACCELERATED BENEFITS.
    Subdivision 1. Disclosure. A life insurance contract or supplemental contract that contains
a provision to permit the accelerated payment of benefits as authorized under section 60A.06,
subdivision 1 , clause (4), must contain the following disclosure: "This is a life insurance policy
which pays accelerated death benefits at your option under conditions specified in the policy. This
policy is not a long-term care policy meeting the requirements of sections 62A.46 to 62A.56
or chapter 62S."
    Subd. 2.[Repealed, 2005 c 132 s 38]
    Subd. 3.[Repealed, 1995 c 258 s 67]
    Subd. 4. Long-term care expenses. If the right to receive accelerated benefits is contingent
upon the insured receiving long-term care services, the contract or supplemental contract shall
include the following provisions:
(1) the minimum accelerated benefit shall be $1,200 per month if the insured is receiving
nursing facility services and $750 per month if the insured is receiving home services with a
minimum lifetime benefit limit of $50,000;
(2) coverage is effective immediately and benefits shall commence with the receipt of
services as defined in section 62A.46, subdivision 3, 4, or 5, or 62S.01, subdivision 25, but may
include a waiting period of not more than 90 days, provided that no more than one waiting period
may be required per benefit period as defined in section 62A.46, subdivision 11;
(3) premium shall be waived during any period in which benefits are being paid to the
insured during confinement to a nursing home facility;
(4) coverage may not be canceled or renewal refused except on the grounds of nonpayment
of premium;
(5) coverage must include preexisting conditions during the first six months of coverage
if the insured was not diagnosed or treated for the particular condition during the 90 days
immediately preceding the effective date of coverage;
(6) coverage must include mental or nervous disorders which have a demonstrable organic
cause such as Alzheimer's and related dementias;
(7) no prior hospitalization requirement shall be allowed unless a similar requirement is
allowed by section 62A.48, subdivision 1, or 62S.06; and
(8) the contract shall include a cancellation provision that meets the requirements of section
62A.50, subdivision 2, or 62S.07.
    Subd. 5. Exclusion. Subdivision 4 does not apply to contracts or supplemental contracts
granting the right to receive accelerated benefits if (1) one of the options for payment provides
for lump-sum payment; (2) no conditions or restrictions are imposed on the use of the funds by
the insured; and (3) the offeree or insured is given written notice at the time the contract or
supplemental contract is offered or sold that (i) Minnesota law sets minimum requirements for life
insurance contracts where the right to receive accelerated benefits is contingent upon the insured
receiving long-term care services, and (ii) the contract or supplemental contract being offered or
sold does not meet those minimum requirements.
    Subd. 6. Accelerated benefits. (a) "Accelerated benefits" covered under this section are
benefits payable under the life insurance contract:
(1) to a policyholder or certificate holder, during the lifetime of the insured, upon the
occurrence of a specified life-threatening or catastrophic condition as defined by the policy or
rider;
(2) that reduce the death benefit otherwise payable under the life insurance contract; and
(3) that are payable upon the occurrence of a single qualifying event that results in the
payment of a benefit amount fixed at the time of acceleration.
(b) "Qualifying event" means one or more of the following:
(1) a medical condition that would result in a drastically limited life span as specified
in the contract;
(2) a medical condition that has required or requires extraordinary medical intervention,
such as, but not limited to, major organ transplant or continuous artificial life support without
which the insured would die;
(3) a condition that requires continuous confinement in an eligible institution as defined in
the contract if the insured is expected to remain there for the rest of the insured's life;
(4) a long-term care illness or physical condition that results in cognitive impairment or
the inability to perform the activities of daily life or the substantial and material duties of any
occupation; or
(5) other qualifying events that the commissioner approves for a particular filing.
History: 1989 c 125 s 3; 1990 c 507 s 1,2; 1996 c 446 art 1 s 11; 1997 c 71 art 2 s 1,2; 2001
c 215 s 8; 1Sp2003 c 14 art 2 s 1