26 USC 4980C - Requirements for issuers of qualified long-term care insurance contracts

U.S Code last checked for updates: Nov 22, 2024

§ 4980C.

Requirements for issuers of qualified long-term care insurance contracts

(a)

General rule

(b)

Amount

(1)

In general

(2)

Waiver

(c)

Responsibilities

The requirements of this subsection are as follows:

(1)

Requirements of model provisions

(A)

Model regulation

The following requirements of the model regulation must be met:

(i)

Section 13 (relating to application forms and replacement coverage).

(ii)

Section 14 (relating to reporting requirements), except that the issuer shall also report at least annually the number of claims denied during the reporting period for each class of business (expressed as a percentage of claims denied), other than claims denied for failure to meet the waiting period or because of any applicable preexisting condition.

(iii)

Section 20 (relating to filing requirements for marketing).

(iv)

Section 21 (relating to standards for marketing), including inaccurate completion of medical histories, other than sections 21C(1) and 21C(6) thereof, except that—

(I)

in addition to such requirements, no person shall, in selling or offering to sell a qualified long-term care insurance contract, misrepresent a material fact; and

(II)

no such requirements shall include a requirement to inquire or identify whether a prospective applicant or enrollee for long-term care insurance has accident and sickness insurance.

(v)

Section 22 (relating to appropriateness of recommended purchase).

(vi)

Section 24 (relating to standard format outline of coverage).

(vii)

Section 25 (relating to requirement to deliver shopper’s guide).

(B)

Model Act

The following requirements of the model Act must be met:

(i)

Section 6F (relating to right to return), except that such section shall also apply to denials of applications and any refund shall be made within 30 days of the return or denial.

(ii)

Section 6G (relating to outline of coverage).

(iii)

Section 6H (relating to requirements for certificates under group plans).

(iv)

Section 6I (relating to policy summary).

(v)

Section 6J (relating to monthly reports on accelerated death benefits).

(vi)

Section 7 (relating to incontestability period).

(C)

Definitions

(2)

Delivery of policy

(3)

Information on denials of claims

If a claim under a qualified long-term care insurance contract is denied, the issuer shall, within 60 days of the date of a written request by the policyholder or certificateholder (or representative)—

(A)

provide a written explanation of the reasons for the denial, and

(B)

make available all information directly relating to such denial.

(d)

Disclosure

(e)

Qualified long-term care insurance contract defined

(f)

Coordination with State requirements

(Added Pub. L. 104–191, title III, § 326(a), Aug. 21, 1996, 110 Stat. 2065.)

cite as: 26 USC 4980C