Every long-term care partnership policy must meet the
standards for long-term care policies or contracts in chapters 48.83 and 48.85
RCW and this chapter, unless specifically provided otherwise.
(1) As used in WAC
284-83-400 through
284-83-420, "qualified long-term
care partnership policy" or "partnership policy" means a long-term care policy
that meets all of the following additional requirements:
(a) The policy was issued on or after January
1, 2012, or exchanged as provided in WAC
284-83-415 on or after January 1,
2012, and covers an insured who was a resident of this state or of another
state that has entered into a reciprocal agreement with this state when
coverage first became effective under the policy.
(b) The policy is a tax qualified long-term
care insurance policy as defined in Section 7702B(b) of the Internal Revenue
Code of 1986 ( 26 U.S.C.
7702 B(b) ).
(c) The policy provides at least the
following levels of inflation protection:
(i)
If the policy is sold to an individual who has not attained age sixty-one as of
the date of purchase, the policy must provide automatic annual compounded
inflation increases at a rate not less than three percent or automatic annual
compounded inflation increases at a rate based on changes in the consumer price
index.
(ii) If the policy is sold
to an individual who has attained age sixty-one but has not attained age
seventy-six as of the date of purchase, the policy must provide automatic
simple inflation increases at a rate not less than three percent or automatic
inflation increases at a rate based on changes in the consumer price
index.
(iii) If the policy is sold
to an individual who has attained age seventy-six as of the date of purchase,
the policy may, but is not required to, provide automatic inflation increases
at a rate based on changes in the consumer price index.
(iv) If the change in the consumer price
index is a negative number for the time period in question, the carrier may not
apply the change in the index to reduce the benefit payable under the
partnership policy. However, the carrier may offset this negative number
against the next annual increase in the consumer price index to reduce the
automatic inflation increase which would otherwise occur during that year. If
the negative consumer price index exceeds the next annual increase in the
consumer price index, it may be offset against multiple annual increases, the
net effect of which may never be less than zero.
(v) For purposes of this section, "consumer
price index" means the consumer price index for all urban consumers, U.S. city
average, all items, as determined by the Bureau of Labor Statistics of the
United States Department of Labor.
(2) Issuers must file a long-term care
insurance policy for approval for use as a partnership policy. The long-term
care Partnership Policy Certification Form must be completed and accompany the
request for approval. The form is available on the commissioner's web site:
www.insurance.wa.gov.
(3) Issuers requesting to make use of a
previously approved policy form as a qualified state long-term care partnership
policy must:
(a) Submit to the commissioner a
Partnership Policy Certification Form signed by an officer of the company;
and
(b) File for approval an
amendatory rider or endorsement indicating the policy is partnership
qualified.
(4) An issuer
or its agent, soliciting or offering to sell a policy that is intended to
qualify as a partnership policy, must provide to each prospective applicant a
Partnership Program Notice found on the commissioner's web site:
www.insurance.wa.gov, outlining the
requirements and benefits of a partnership policy. The Partnership Program
Notice must be provided with the required outline of coverage.
(5) A partnership policy issued for delivery
in Washington must be accompanied by a Partnership Status Disclosure Notice
found on the commissioner's web site:
www.insurance.wa.gov, explaining the
benefits associated with a partnership policy and indicating that at the time
issued, the policy is a qualified Washington state long-term care insurance
partnership policy. The Partnership Disclosure Notice must also include a
statement indicating that by purchasing this partnership policy, the insured
does not automatically qualify for medicaid.