Every long-term care insurance policy and certificate shall include a provision
that allows the policyholder or certificateholder to reduce coverage and lower
the policy or certificate premium in at least one of the following ways:
(a) Reducing the maximum benefit;
(b) Reducing the daily, weekly
or monthly benefit amount.
(2) The insurer may also offer other
reduction options that are consistent with the policy or certificate design or
the carrier's administrative processes.
B. The provision shall include a description
of the ways in which coverage may be reduced and the process for requesting and
implementing a reduction in coverage.
C. The age to determine the premium for the
reduced coverage shall be based on the age used to determine the premiums for
the coverage currently in force.
The insurer may limit any reduction in coverage to plans or options available
for that policy form and to those for which benefits will be available after
consideration of claims paid or payable.
If a policy or certificate is about to
lapse, the insurer shall provide a written reminder to the policyholder or
certificateholder of his or her right to reduce coverage and premiums in the
notice required by Section
of this rule.
F. This section does not apply to
life insurance policies or riders containing accelerated long-term care
G. The requirements of
this section shall apply to any long-term care policy issued in this state on
or after July 1, 2008.