2000 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.    Advertisements.  Any advertisement related 
 to a contract or supplemental contract providing for the payment 
 of accelerated benefits must be approved by the commissioner 
 prior to its use.  The commissioner shall not approve the 
 advertisement if it is likely to lead a prospective purchaser to 
 believe that it is a long-term care policy.  

    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 Repealed, 1995 c 258 s 67 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. 

    HIST: 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