31A-22-1412 - Nonforfeiture benefits. - Utah Statutes

31A-22-1412. Nonforfeiture benefits.
(1) (a) A long-term care insurance policy or certificate may not be delivered or issued fordelivery in this state unless the policyholder or certificate holder has been offered the option ofpurchasing a policy or certificate including a nonforfeiture benefit.
(b) The offer of a nonforfeiture benefit under Subsection (1)(a) may be in the form of arider that is attached to the policy.
(c) If the policyholder or certificate holder declines the nonforfeiture benefit offeredunder this Subsection (1), the insurer shall provide a contingent benefit upon lapse of the policy orcertificate that is available for a specified period of time following a substantial increase inpremium rates.
(d) (i) Except as provided in Subsection (1)(d)(ii), if a group long-term care insurancepolicy is issued, the offer required in this Subsection (1) shall be made to the group policyholder.
(ii) If the policy is issued to a group authorized under Section 31A-22-509, the offerrequired under this Subsection (1) shall be made to each proposed certificate holder.
(2) The commissioner shall make rules:
(a) specifying the types of nonforfeiture benefits to be offered as part of a long-term careinsurance policy or certificate;
(b) specifying the standards for nonforfeiture benefits; and
(c) regarding contingent benefits upon lapse, including a determination of:
(i) the specified period of time during which a contingent benefit upon lapse will beavailable as provided in Subsection (1); and
(ii) the substantial premium rate increase that triggers a contingent benefit upon lapse asprovided in Subsection (1).

Amended by Chapter 116, 2001 General Session