§ 27-34.2-19. Nonforfeiture benefits.
(a) Except as provided in subsection (b), a long-term care insurance policy may not be delivered or issued for delivery in this state unless the policyholder or certificateholder has been offered the option of purchasing a policy or certificate including a nonforfeiture benefit. The offer of a nonforfeiture benefit may be in the form of a rider that is attached to the policy. In the event the policyholder or certificateholder declines the nonforfeiture benefit, the insurer shall provide a contingent benefit upon lapse that shall be available for a specified period of time following a substantial increase in premium rates.
(b) When a group long-term care insurance policy is issued, the offer required in subsection (a) shall be made to the group policyholder. However, if the policy is issued as group long-term care insurance as defined in subdivision 27-34.2-4(4)(v), other than to a continuing care retirement community or other similar entity, the offering shall be made to each proposed certificateholder.
(c) The commissioner shall promulgate regulations specifying the type or types of nonforfeiture benefits to be offered as part of long-term care insurance policies and certificates, the standards for nonforfeiture benefits, and the rules regarding contingent benefit upon lapse, including a determination of the specified period of time during which a contingent benefit upon lapse will be available and the substantial premium rate increase that triggers a contingent benefit upon lapse as described in subsection 1.
History of Section.P.L. 1997, ch. 153, § 2; P.L. 1997, ch. 161, § 2; G.L. 1956, § 27-34.2-20; P.L. 2007, ch. 239, § 1.
Structure Rhode Island General Laws
Chapter 27-34.2 - Long Term Care Insurance
Section 27-34.2-3. - Short title.
Section 27-34.2-4. - Definitions.
Section 27-34.2-5. - Extraterritorial jurisdiction — Group long term care insurance.
Section 27-34.2-6. - Disclosure and performance standards for long-term-care insurance.
Section 27-34.2-7. - Repealed.
Section 27-34.2-7.1. - Incontestability period.
Section 27-34.2-8. - Discretionary powers of director.
Section 27-34.2-9. - Administrative procedures.
Section 27-34.2-10. - Enforcement and penalties.
Section 27-34.2-11. - Repealed.
Section 27-34.2-12. - Unintentional policy lapse.
Section 27-34.2-13. - Requirement to offer inflation protection.
Section 27-34.2-14. - Standards for marketing.
Section 27-34.2-15. - Requirement to deliver shopper’s guide.
Section 27-34.2-16. - Authority to promulgate regulations.
Section 27-34.2-17. - Repealed.
Section 27-34.2-18. - Pre-certification for Medicaid protection of resources.
Section 27-34.2-19. - Nonforfeiture benefits.
Section 27-34.2-20. - Severability.