2006 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insurer in the event that the policy or certificate is rescinded.
    Subd. 6. Death of insured. In the event of the death of the insured, this section shall not
apply to the remaining death benefit of a life insurance policy that accelerates benefits for
long-term care. In this situation, the remaining death benefits under these policies shall be
governed by section 61A.03, subdivision 1, paragraph (c). In all other situations, this section shall
apply to life insurance policies that accelerate benefits for long-term care.
History: 1997 c 71 art 1 s 13; 2006 c 255 s 40; 2006 c 282 art 17 s 6