Sec. 3923.
(1) 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 a long-term care insurance policy after date of issue or at reinstatement or renewal that reduce or eliminate benefits or coverage in the policy shall require signed acceptance by the insured individual. After the date of policy issue, any rider or endorsement that increases benefits or coverage with a concomitant increase in premium during the policy term shall be agreed to in writing and signed by the insured, except if the increased benefits or coverage are required by law. If a separate additional premium is charged for benefits provided in connection with riders or endorsements, that premium charge shall be set forth in the policy, rider, or endorsement.
(2) A long-term care insurance policy that provides for the payment of benefits based on standards described as "usual and customary", "reasonable and customary", or words of similar import shall include a definition of the terms and an explanation of the terms in its accompanying summary of coverage.
(3) If a long-term care insurance policy contains any limitations with respect to preexisting conditions, the limitations shall appear as a separate paragraph of the policy and shall be labeled as "preexisting condition limitations".
(4) A long-term care insurance policy containing any limitations or conditions for eligibility shall set forth a description of the limitations or conditions, including any required number of days of confinement, in a separate paragraph of the policy and shall label the paragraph "limitations or conditions on eligibility for benefits".
History: Add. 1992, Act 84, Imd. Eff. June 2, 1992 Popular Name: Act 218
Structure Michigan Compiled Laws
Chapter 500 - Insurance Code of 1956
Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302)
218-1956-39 - Chapter 39 Long-Term Care Insurance (500.3901...500.3955)
Section 500.3901 - Long-Term Care Insurance; Definitions.
Section 500.3902 - Offer of Long-Term Care Coverage by Subsidiary of Health Care Corporation.
Section 500.3908 - Long-Term Care Partnership Program Policy; Conversion or Replacement.
Section 500.3911 - Preexisting Condition; Limitation Period; Definition.
Section 500.3913 - Home Health Care Benefits.
Section 500.3915 - Certain Conditions Prohibited.
Section 500.3919 - Institutionalization; Extension of Benefits; Limitations.
Section 500.3929 - Increasing Premiums Prohibited; Conditions.
Section 500.3933 - Summary of Coverage.
Section 500.3935 - Statement Relating to Request for Additional Information.
Section 500.3937 - Shopper's Guide; Format; Providing to Applicants; Exception.
Section 500.3941 - Advertising; Filing Copy With Commissioner.
Section 500.3942a - Reporting Requirements; Agent Activities; Preparation of Report.
Section 500.3943 - Right to Return Policy; Notice; “Direct Response Solicitation” Defined.
Section 500.3945 - Violation; Penalty.
Section 500.3949 - Life and Long-Term Care Benefits; Marketing; Compliance.
Section 500.3953 - Disclosure Statement.
Section 500.3955 - Compliance With Chapter and Applicable Laws.